Purchase Decisions Are Based on How Consumers Perceive Prices and What

question 37

Multiple Choice

Purchase decisions are based on how consumers perceive prices and what they consider to be the ________ price-not the marketer's stated price.

• A) current actual
• B) last purchased price
• C) current sale price
• D) referent price
• E) none of the above

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Definitions:

Budget Line

A visual depiction showing every potential pairing of two products that a specific budget can buy at predetermined prices.

Horizontal Axis

The x-axis in a graph, typically representing the independent variable or the quantity of goods in economic graphs.

Vertical Axis

In a graph or chart, the y-axis along which numerical data, typically representing a variable being measured, is plotted.

Budget Line

A graphical representation of all possible combinations of two goods which a consumer can purchase with a given budget, at fixed prices for those goods.