If Macy's Department Store Prices Its Men's Ties at $10

question 210

Multiple Choice

If Macy's department store prices its men's ties at $10 intervals between $38 and $68, this is an example of:

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

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Definitions:

Before-tax

Financial figures or income amounts that have not had taxes deducted.

Excise Tax

A levy imposed on the creation, distribution, or use of goods within a nation.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to buy.

Supply Curve

A graph that shows the relationship between the price of a good and the quantity of the good that producers are willing and able to sell, usually upward sloping, demonstrating that the higher the price, the more producers are willing to supply.