Why Do You Think Goods Are Sometimes Marked in Prices

question 39

Multiple Choice

Why do you think goods are sometimes marked in prices that end in 9s, for example ―$29.99‖ instead of $30, or ―$9.99‖ instead of $10? I. Consumers respond to incentives-they view the products as cheaper and so they buy more. II. Businesses are sneaky and add the extra cent onto taxes on the product. III. It is a sales strategy that makes people think the product is on sale.

• A) I only
• B) II only
• C) III only
• D) I and III

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Definitions:

Retention

The ability to keep, hold, or maintain something in the mind over time, especially information and memories.

Latent Learning

Learning that occurs without obvious reinforcement and is not demonstrated until there is motivation to do so.

Unreinforced Learning

Learning that occurs without any specific feedback or reinforcement for responses or behaviors.

Extinction

Within psychology, the process where a conditioned response slowly diminishes and eventually ceases when the connection between the conditioned stimulus and the unconditioned stimulus is no longer made.