Coupons Represent a Form of Price Discrimination Because They Offer

question 99

Multiple Choice

Coupons represent a form of price discrimination because they offer a low-cost way for firms to

• A) identify customers with apparently more elastic demand and offer them a lower price.
• B) retain loyal customers who are not price sensitive.
• C) offer discounts to consumers who buy larger quantities.
• D) perfectly price discriminate.

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Definitions:

Moral Obligations

Ethical duties that a person feels compelled to perform based on personal beliefs about right and wrong, despite not being enforceable by law.

Illusory

Appearing to be real or possible, but actually being deceptive or unreal.

Adequate Consideration

Something of value exchanged between parties in a contract, which is fairly sufficient and corresponds to the terms and obligations agreed upon.

Arbitration Clause

A contract provision requiring disputes to be resolved by arbitration rather than in court.