Jameson Purchased an Alarm System for His Car During a Promotion

question 49

Multiple Choice

Jameson purchased an alarm system for his car during a promotion. He considered the price after the promotion to be very attractive. However, he later learned that the firm set an artificially high reference price for the alarm system just before the promotion to make the advertised sale price more attractive. Jameson just experienced ________.

• A) price fixing
• B) price discrimination
• C) deceptive pricing
• D) bait and switch
• E) predatory pricing

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Definitions:

Soap

Salt of fatty acids that are primarily used for cleaning and lubrication, formed by the reaction between an alkali and a fat or oil.

Detergent

A chemical compound used to remove dirt, including surfactants that can break up and remove grease and oil.

Terpenes

A large and diverse class of organic compounds produced by a variety of plants, especially conifers, which are often strong smelling and used in natural roles as protection against herbivores, insects, and pathogens, as well as in perfumes, spices, and pharmaceuticals.

Sesquiterpene

A category of terpenes composed of three units of isoprene, bearing the molecular formula C15H24.