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The Gap In-Store Signage Photo Above Shows That Customers Can

question 3

Multiple Choice

The Gap in-store signage photo above shows that customers can save 60 percent off a second item if they purchase one at the full price.This is an example of a __________ deal to entice shoppers to buy additional items.

Definitions:

Equilibrium Price

The market price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.

Short Run

A period of time during which at least one input in the production process is fixed, limiting the ability of a business to adjust to changes in market demand.

Industry Supply

The aggregate production of goods or services that companies within a particular sector can and want to offer at different pricing points.

Pure Competition

A market structure characterized by a large number of small firms producing identical products, where no single company has pricing power and market entry and exit are relatively easy.