If a Supermarket Runs an Ad for a Gallon of Milk

question 39

Multiple Choice

If a supermarket runs an ad for a gallon of milk in the local newspaper at a price that many consumers will recognize as a low price for this product, this is an example of:

• A) Reference pricing
• B) Price lining
• C) Bundle pricing
• D) Leader pricing
• E) Bait pricing

---

Definitions:

Share Capital

The total amount of money raised by a company through the sale of shares to shareholders; represents the equity funding of the business.

Stock Dividends

A form of dividend paid by a company to its shareholders in the form of additional shares, rather than cash.

Market Price

The current price at which an asset or service can be bought or sold in a public market.

Stock Dividends Distributable

A portion of a company's earnings allocated to shareholders in the form of additional shares, rather than cash, typically at a fixed rate.