Price Wars Among Firms

question 71

Multiple Choice

Price wars among firms

• A)tend to reduce short-run price stickiness because firms know they can lower their own prices without rival firms lowering their prices.
• B)occur when one firm lowers its price and rival firms react by lowering their prices.
• C)occur when firms use advertising to take customers away from rival firms.
• D)have no effect on the degree of short-run price stickiness.

---

Definitions:

Temporal Lobe

A region of the brain responsible for processing auditory information and is involved in memory and emotion.

Method of Loci

A mnemonic technique that involves associating items to be remembered with specific physical locations.

Shopping Mall

A large retail complex containing a variety of stores and often restaurants, providing a wide range of goods and services under one roof.

Mental Picturing

The process of creating visual images in the mind, which can aid in memory, learning, and understanding complex information.