The Argument That Consumers Will Not Be Willing to Pay

question 335

Multiple Choice

The argument that consumers will not be willing to pay any more for two items sold as one than they would for the two items sold separately is used to justify the legality of which of the following?

• A)resale price maintenance
• B)tying
• C)predatory pricing
• D)free-riding

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Definitions:

Price Ceiling

A legal maximum price set by authorities for goods or services, intended to prevent prices from rising above a certain level to protect consumers.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Government Implements

Actions taken by the government to put policies, regulations, or laws into effect.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product, intended to protect consumers from high prices.