The Gillette Fusion Razor Sells for Approximately $10

question 37

Multiple Choice

The Gillette Fusion razor sells for approximately $10.00, and a four-set of replacement blades sells for over $8. Which of the following statements is TRUE?
I. Consumers with a high willingness to pay for being clean-shaven will buy many replacement blades.
II. Consumers with a low willingness to pay for being clean-shaven will rarely buy replacement blades.
III. Gillette's high price for the replacement blades is a method to extract consumer surplus from those consumers with a high desire to be clean-shaven.

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

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Definitions:

East India Company

A British trading company granted a monopoly on trade in the East Indies, playing a crucial role in British imperial expansion and control over India.

Surcharge

An additional charge, tax, or cost added to the usual cost of goods or services.

Coercive Acts

British legislation passed in 1774 designed to punish the Massachusetts colonists for the Boston Tea Party.

Punishment

A method used to enforce discipline or impose a penalty for violating laws or rules, ranging from fines to imprisonment.