Computer City Advertises That Is Has Dall Laptop Computers Model

question 18

Multiple Choice

Computer City advertises that is has Dall Laptop Computers Model S600 regularly $800 on sale for $75. Jenna sees the ad and goes to Computer City as soon as the store opens only to be told they only had 2 Dall S600s in stock but told her that the Dall S700 was in stock and it was regularly $850 on sale for $400. As a result Computer City

• A)has done nothing wrong as it had 2 Dall 600s for customers
• B)is liable for price maintenance
• C)bait and switch
• D)predatory pricing
• E)abuse of dominant position

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Definitions:

Endowed

In economics, it refers to the initial allocation of income, wealth, or goods to an individual or an entity at the start of an economic analysis or experiment.

Units

Basic quantities or measurements used to express variables, stock, or outputs in any kind of scientific, economic, or engineering calculations.

Edgeworth Box

A diagram used in economics to show the distribution of resources between two individuals, illustrating how trade can lead to an efficient allocation.

Pareto Optimal Allocations

A situation where resources in an economy are allocated in such a way that it is impossible to make any one individual better off without making at least one individual worse off.