A New Soft Drink Company Sells Their Cola Product at $0.25

question 213

Multiple Choice

A new soft drink company sells their cola product at $0.25 a bottle in vending machines, rather than the traditional $1.50 per bottle of the same size. This is an example of:

• A)skimming pricing.
• B)price lining.
• C)penetration pricing.
• D)odd-even pricing.

---

Definitions:

Velocity of Money

The rate at which money circulates in the economy, typically measured as the ratio of GDP to the money supply.

Money in Circulation

The total amount of money, including cash and coins, that is in active use and circulating within an economy.

Real GDP

Represents the total value of all goods and services produced within a country adjusted for inflation, indicating the actual growth of an economy.

Aggregate Spending

The total amount of money spent by all sectors of an economy, including consumption, investment, government purchases, and net exports.