When Shopping in Some Countries, Bargaining Is Standard

question 99

Multiple Choice

When shopping in some countries, bargaining is standard. The sellers ask for a high price to start, and then decrease the price until the sale is made. This is due to

• A) prices changing so quickly that it doesn't make sense to make price tags.
• B) consumers trying to gain as much consumer surplus as they can.
• C) producers trying to gain as much consumer surplus as they can.
• D) the market unable to reach equilibrium.
• E) no government control.

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Definitions:

Asset

Resources owned or controlled by a business that are expected to provide future economic benefits.

Original Cost

The initial price paid or cost of acquisition of an asset, before any depreciation, amortization, or impairment costs are deducted.

Increased Revenues

A rise in the amount of money a company earns from its business activities over a certain period.

Fixed Costs

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance premiums.