When a Previous Visitor to Amazon

question 153

Multiple Choice

When a previous visitor to Amazon.com returns to the site, the online retailer will instantly know whether that visitor made a previous purchase based on the ___________ it placed on the visitor's computer during the first visit.

• A) institution
• B) reminder
• C) cooperative
• D) cookie
• E) allowance

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Definitions:

Price Ceiling

A legal maximum price that can be charged for a good or service, intended to protect consumers from price gouging.

Equilibrium Price

The price at which the quantity of a good supplied equals the quantity demanded, resulting in market equilibrium.

Market-Determined Price

A price outcome established through the interaction of supply and demand, without external controls.

Binding Price Ceiling

A maximum legal price set below the equilibrium price, leading to shortages as demand exceeds supply.