Charging Lower Prices at Certain Times to Encourage Customers to Come

question 98

Multiple Choice

Charging lower prices at certain times to encourage customers to come during slack periods refers to

• A)off-peak pricing.
• B)bundling.
• C)random discounting.
• D)partitioned pricing.

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Definitions:

Equilibrium GDP

The level of Gross Domestic Product at which aggregate supply equals aggregate demand, indicating a stable economy.

Full Employment GDP

Full Employment GDP is the output level produced by an economy when all its labor and resources are employed at their maximum efficiency.

Multiplier

refers to a factor by which an initial change in spending will ultimately change the total economic output more than the initial amount.

Multiplier

In economics, a factor by which an initial change in spending will alter total economic output due to follow-on effects.