A Company Manufacturing Shampoo Charges a Low Price to Customers

question 39

Multiple Choice

A company manufacturing shampoo charges a low price to customers who buy sachets on the premise that these customers belong to lower income groups and are more price sensitive.On the other hand, it charges higher prices to customers who purchase the same shampoo in bottles.This is an example of:

• A)predatory pricing.
• B)vertical price fixing.
• C)horizontal price fixing.
• D)price discrimination.
• E)bait and switch.

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Definitions:

Breaches

Instances of violating or not adhering to a law, contract, or set of rules.

Award Damages

The process of a court granting monetary compensation to a party for losses or injuries suffered.

Compensatory Damages

Compensatory damages are a monetary award given to a plaintiff to compensate for a loss, injury, or harm suffered as a result of another party's actions.

Technical Injury

Harm or damage that occurs in a legal context without the occurrence of direct physical harm, often relating to infringement of rights or breach of contract.