Which of the Following Is the Correct Definition of 'Price

question 23

Multiple Choice

Which of the following is the correct definition of 'price gouging'?

• A) Selling a product at a low price with the intention of driving competitors out of the market.
• B) Taking advantage of a change in market circumstances to increase prices.
• C) Charging a supplier a fee for access to the shelf space of a retail store.
• D) Inducing a customer to sign an open ended periodic payment authority.

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Definitions:

Induced Consumption

The portion of consumer spending that varies with income. As income increases, consumers will spend more, and as income decreases, consumers will spend less.

Disposable Income

The financial capabilities households have for saving and spending endeavors post income tax deductions.

Consumption

The use of goods and services by households, including the acquisition of goods and services for personal use or ownership.

Induced Consumption

The portion of consumer spending that increases or decreases as disposable income increases or decreases, respectively.