Consumers Sometimes Prefer Two-Part Pricing Because

question 108

Multiple Choice

Consumers sometimes prefer two-part pricing because:

• A) prices are often perceived as quality indicators.
• B) consumers like to be in control of costs.
• C) consumers are uncertain about the number and types of activities they might use at places like an amusement park.
• D) consumers prefer a limited number of choices.
• E) prices have little or no psychological influence on most consumers.

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Definitions:

Increase in Demand

A situation where there is a rise in the quantity of a product or service that consumers are willing and able to buy at given prices.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers over a certain period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period of time.

Increase in Demand

A shift of the demand curve to the right, indicating that consumers are willing and able to purchase more of a good or service at every price.