Consider the Price and Quantity Data Below for a Perfectly

question 12

Multiple Choice

Consider the price and quantity data below for a perfectly competitive firm producing mousetraps.
TABLE 9-1
-Refer to Table 9-1.Suppose this firm is currently selling 1750 mousetraps at the market price of $5.If the firm raises its price to $6,it's average revenue will be

• A)$0.
• B)$5.
• C)$6.
• D)between $5 and $6.
• E)greater than $6.

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Definitions:

Foot-In-The-Door Effect

A mental phenomenon wherein consenting to a minor request enhances the chances of acquiescing to a more significant request subsequently.

Low Balling

A persuasion technique often used in sales where an initially low price is presented to secure agreement from the buyer, only to increase the cost through the addition of extras or disclosure of hidden costs.

Social Conformity

The act of adjusting one's thoughts or behaviors in order to fit in with the norms or standards of a social group or society.

Door-In-The-Face Effect

A compliance technique whereby a large, unreasonable request is made first, followed by a smaller, more reasonable request, which is the actual desired outcome.