Examlex

Solved

A Car Manufacturer Has Developed Different Models of a Car

question 3

Multiple Choice

A car manufacturer has developed different models of a car to suit the pricing needs of different classes of customers. It offers a low-end version for price conscious customers and luxury cars for high-end customers. This is an example of _____ pricing.


Definitions:

Theory of Consumer Behavior

A framework that examines how consumers make decisions to allocate their resources on consumption-related items.

Marginal Utility

The increased pleasure received from consuming an extra unit of a good or service.

Rational Consumer

A consumer who systematically and logically evaluates available options to maximize their satisfaction or utility in decision-making processes.

Marginal Utility

The surplus enjoyment or utility obtained from the consumption of one extra unit of a good or service.

Related Questions