The Tendency of People to Comply with a Second, Lesser

question 11

Multiple Choice

The tendency of people to comply with a second, lesser request after refusing a larger one is called the __________ effect.

• A) lowball
• B) door-in-the-face
• C) foot-in-the-door
• D) bait-and-switch

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Definitions:

Marginal Cost

The financial outlay required to produce a further unit of a product or service.

Demand

Demand refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given time period.

Inverse Demand Curve

A representation of the demand for a good showing the maximum price consumers are willing to pay for a given quantity.

Perfect Price Discrimination

Perfect price discrimination occurs when a seller charges each buyer their maximum willingness to pay, extracting all consumer surplus.