If Lion Mart Advertises a 2-Liter Bottle of Pepsi for 89

question 204

Multiple Choice

If Lion Mart advertises a 2-liter bottle of Pepsi for 89 cents to generate store traffic that will increase the purchasing of other items at regular prices,the grocer is using

• A) reference pricing.
• B) a price leader.
• C) special-event pricing.
• D) comparison discounting.
• E) professional pricing.

Comprehend the definition and implications of market power.

Identify examples of market failure and understand its causes.

Grasp the role of government intervention in correcting market failures and externalities.

Understand the importance of property rights in a market economy.