Price Differentiation Attempts to Sell

question 131

Multiple Choice

Price differentiation attempts to sell

• A) different products with different features at the same price.
• B) identical products at different times at different prices.
• C) products at lower prices, due to economies of scale unintentionally resulting in lower net income for the company.
• D) products to customers based on their ability to pay.
• E) all products at different prices.

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Definitions:

Consumption

The use of goods and services by households. It is a primary component of economic activity and a key indicator of economic health.

Dissaving

Dissaving occurs when expenditures exceed income, leading to a depletion of savings or the accumulation of debt.

APC

The abbreviation for Average Propensity to Consume, which is the fraction of income that is spent on consumption rather than saved.

Marginal Propensity

This term explains the tendency of an individual or household to spend an additional unit of currency. For example, the marginal propensity to consume indicates how much consumption will increase with an additional dollar earned.