Marketers Advertising an Artificially High "Regular Price" Are Unethically Attempting

question 46

Multiple Choice

Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers' __________ perceptions.

• A) fixed price
• B) reference price
• C) seasonal price
• D) leader price
• E) cost-based price

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Definitions:

Express Authority

An agent’s authority that the principal voluntarily and specifically sets forth as oral or written instructions in an agency agreement.

Apparent Authority

A situation where a reasonable person would understand that an agent had the power to act on behalf of a principal, even if the agent did not have actual authority.

Agency Relationship

A legal and principal relationship between two parties, where one (the agent) is authorized to act on behalf of the other (the principal) in business transactions.

Durable Power Of Attorney

A document that authorizes an agent to act on another’s behalf, with the power either surviving incapacity or becoming effective upon incapacity.