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Sara Wears the Same Bracelet to Class Each Time She

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Essay

Sara wears the same bracelet to class each time she has a major test because she believes that wearing this piece of jewelry will assure her an A just like she got on the first test when she was wearing the bracelet. Sara is exhibiting a(n)__________ behavior.


Definitions:

Tying

Practice of requiring a customer to purchase one good in order to purchase another.

Price Discrimination

The strategy of selling the same product at different prices to different groups of buyers, often based on their willingness to pay.

Market Power

The ability of a company or entity to influence the price and production levels in a market.

Two-part Tariff

A pricing strategy that consists of a fixed fee plus a variable charge for actual consumption.

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