Firms Are Better Off Using Rebates Rather Than Just Lowering

question 110

Multiple Choice

Firms are better off using rebates rather than just lowering the price of a good because

• A)people view the firm in a positive light because now poorer people will be able to afford their good.
• B)customers overestimate the value of the rebate and so buy more of the good, making profits higher than if they just lowered the price.
• C)only those who place a low value on their time or are price sensitive actually redeem the rebate, making profits higher than if they just lowered the price.
• D)lowering the price is inefficient and creates additional deadweight loss.

Understand the dynamics and consequences of political alliances and opposition within the context of New Deal policies.

Recognize the impact of New Deal policies on civil liberties and minority rights.

Analyze the influence of economic theories on New Deal policies and their implications for American economic practices.

Understand the factors affecting unionization rates across different industries and occupations in the United States.

---

Definitions:

Record

A documented account of financial transactions or occurrences.