A Retail Store Advertises an SLR Digital Camera for $350

question 179

Multiple Choice

A retail store advertises an SLR digital camera for $350. Once bargain hunters come to the store, salespeople point out the disadvantages of the low-priced camera and try to convince them to trade up to a better, and more expensive, unit. This is an example of

• A) price following.
• B) bait pricing.
• C) odd-even pricing.
• D) low pricing.
• E) everyday low pricing.

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Definitions:

Variable

An element, feature, or factor that is likely to vary or change; in scientific experiments, the characteristic that is tested to observe its effects.

Time

A measurable period during which events occur, processes take place, or conditions exist.

Slope

In mathematics and economics, it's the measure of the steepness or incline, often used to describe a change in a variable in relation to a change in another variable.

45-degree Line

In economics, a reference line that represents where the quantity demanded equals the quantity supplied.