In Order to Avoid the Bullwhip Effect,how Should Pricing Policies

question 29

Multiple Choice

In order to avoid the bullwhip effect,how should pricing policies be structured with relation to demand?

• A)To facilitate steady demand
• B)So demand will react rapidly to changes
• C)To lag demand
• D)To charge what the market will bear
• E)Pricing is not a cause of the bullwhip effect

---

Definitions:

Dominant Response

The reaction that is most likely to be exhibited by an individual in a given situation due to its strength or frequency of reinforcement.

Ingroup Bias

The inclination to prefer individuals from one's own group above those from outsider groups, frequently resulting in bias and unfair treatment.

Free Riders

Individuals or entities that benefit from resources, goods, or services without paying for them or contributing to their provision.

Common Resource

A type of good that is accessible to all members of a community or society but is susceptible to overuse and depletion.