Marking Merchandise with an Exceptionally High Price and Then Claiming

question 65

Multiple Choice

Marking merchandise with an exceptionally high price and then claiming that the lower selling price actually used represents a legitimate price reduction is an example of _____.

• A)deceptive pricing
• B)price fixing
• C)predatory pricing
• D)price discrimination

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Definitions:

Budget Line

A graphical representation showing the combination of goods a consumer can purchase with a given income.

Money Income

The total amount of monetary earnings received by an individual or household in a specific period, including wages, salaries, and other forms of income.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, helping to illustrate preferences and the concept of utility.

Budget Line

A visual depiction of every combination of two items that can be bought within a specified budget at constant prices.