A Company Charges More Per Bottle When Consumers Buy Bigger

question 87

Multiple Choice

A company charges more per bottle when consumers buy bigger bottles of shampoo.It works on the premise that people who buy small packs of shampoo are price sensitive.Therefore, the company offers them discounts of up to 70 percent.If a customer buys shampoo in bottles, she ends up paying up more per millilitre.This is an example of:

• A)price fixing.
• B)price discrimination.
• C)predatory pricing.
• D)referral selling.
• E)resale price maintenance.

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Definitions:

Cognitive-behavioral Therapies

A group of psychological treatments that focus on changing patterns of thinking or behavior to treat various disorders, particularly emotional and mental health issues.

Hypochondriasis

A persistent fear of having a serious medical condition despite medical reassurance, previously classified as a type of anxiety disorder.

Drug Therapy

The treatment of diseases or disorders with pharmaceutical drugs.

Lithium

A chemical substance employed to manage bipolar disorder by balancing mood fluctuations.