A Leading Hard-Disk Manufacturer Introduces a New Line of High-Capacity

question 26

Multiple Choice

A leading hard-disk manufacturer introduces a new line of high-capacity disk drivers. After selling to elite customers at a high price point, the company slowly reduces its prices over a period of time. The company is engaging in

• A) single pricing.
• B) introductory price dealing.
• C) price skimming.
• D) penetration pricing.
• E) predatory pricing.

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Definitions:

Negotiable

A term referring to a document or instrument that is transferable from one person to another in a form that is legally effective for the transfer.

Promissory Note

A written, legally binding agreement in which one party promises to pay another a specific sum of money by a set date.

Revised Article 3

An updated version of Article 3 of the Uniform Commercial Code (UCC) that governs negotiable instruments, including checks and promissory notes.

UCC

Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.