Bob Biltmore Owns Dozens of Successful Print Shops in the Midwest

question 176

Multiple Choice

Bob Biltmore owns dozens of successful print shops in the Midwest. Biltmore's shops specialize in low-cost, black-and-white copies and feature user-friendly machines consumers can easily operate. In recent months, Biltmore has noticed more competition near his stores. In an attempt to eliminate the competition, Biltmore has decided to charge a very low price for his black-and-white copies, a price so low his competitors will be forced to close. After that, Biltmore plans to raise copy prices. He plans to engage in the illegal and unethical practice of

• A) price fixing.
• B) price inflation.
• C) deceptive pricing.
• D) competitive pricing.
• E) predatory pricing.

Recognize the relationship between goods' characteristics (inferior, normal, substitutes, complements) and consumer choice behavior under income changes.

Understand the income and substitution effects of price changes on consumer choice.

Learn how the theory of consumer choice demonstrates key economic principles such as trade-offs.

Understand the relationship between consumer income and the consumption of normal and inferior goods.

---

Definitions:

Experimenter Bias

A form of research bias where the expectations of the researcher unintentionally influence the outcome of an experiment.

Subject Bias

A form of bias caused by variations in participants' responses for reasons unrelated to the experimental manipulation.

Rating Scale

Assessment in which a numerical value is assigned to specific behavior that is listed in the scale.

Frequency Count

Assessment in which the frequency of a particular behavior is counted.