The Manufacturers of Miracle-Gro Have Square Boxes of the Plant

question 241

Multiple Choice

The manufacturers of Miracle-Gro have square boxes of the plant food that serve as a flower-pot liner. The customer just puts the box inside the flower pot, fills it with potting soil, and then adds water. The Miracle-Gro chemical is activated by the water and begins feeding the plant. This would be an example of ____ packaging.

• A) multiple
• B) secondary-use
• C) innovative
• D) category-consistent
• E) handling-improved

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Definitions:

Perfect Price Discrimination

A pricing strategy where a seller charges each buyer their maximum willingness to pay, extracting all the consumer surplus.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

Third-Degree Price Discrimination

Practice of dividing consumers into two or more groups.

Price Elasticities

Measures of how the quantity demanded or supplied of a good responds to a change in its price.