In the Electric Power Industry,residential Customers Have Relatively ____ Demand

question 18

Multiple Choice

In the electric power industry,residential customers have relatively ____ demand for electricity compared with large industrial users.But contrary to price discrimination,large industrial users generally are charged ____ rates.

• A) similar,similar
• B) elastic,lower
• C) elastic,higher
• D) inelastic,lower
• E) inelastic,higher

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Definitions:

Sales Puffery

Persuasive words or exaggerated arguments made by salespeople to induce customers to buy their product. As long as such comments are reserved to opinion and do not misstate facts, they are not actionable as fraud, even if they turn out to be grossly in error. Also called puffery.

Bait-and-Switch

A deceptive marketing strategy where a seller advertises a product at a low price to attract customers, then persuades them to buy a more expensive item.

Cooling-Off Rule

A regulation that allows consumers a set period of time after a purchase to cancel a transaction, usually employed in sales made at home or locations other than the seller's place of business.

Consumer Product Parties

Social gatherings aimed at the demonstration, promotion, and sale of products to consumers in a private home setting.