For Many Products, Such as Fast Foods, a Variety of Prices

question 218

Multiple Choice

For many products, such as fast foods, a variety of prices can be found, but sellers with higher prices can expect to sell their products because

• A)consumers are not sensitive to prices.
• B)arbitrage will quickly eliminate price differences.
• C)firms differentiate products in many ways, for example, higher-priced fast food restaurants may offer better service.
• D)their demand is perfectly inelastic.

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Definitions:

Stereotypical

Pertaining to a fixed, overly simplistic, and generalized belief or idea about a particular group of people or thing.

Defensive Attribution

A psychological process in which individuals attribute causes to events in a way that defends themselves from feelings of vulnerability and mortality.

Victims

Individuals who have suffered harm or injury as a result of an action or event.

Misfortune

An instance of bad luck or an unfortunate condition or event affecting someone's life or circumstances.