Price Discrimination-A Christmas Story

Last updated 8 months ago

4 questions

1

Why can merchants charge higher prices before Dec 25, according to the text?

Shoppers dislike quality gifts

Stores have excess inventory

Shoppers are demand inelastic

Government sets a price floor

Cost-plus pricing

Subsidy policy

Price discrimination

Predatory pricing

Low-income avoid chaos

High-income crave crowds

High-income avoid crowded bargains

Crowds raise prices for all

Decrease

Stay unchanged

Become perfectly elastic

Increase

Why can merchants charge higher prices before Dec 25, according to the text?

Shoppers dislike quality gifts

Stores have excess inventory

Shoppers are demand inelastic

Government sets a price floor

The practice of raising pre-Christmas prices and slashing them on Boxing Day illustrates which concept?

Cost-plus pricing

Subsidy policy

Price discrimination

Predatory pricing

How does a hectic Boxing Day atmosphere screen consumers by income?

Low-income avoid chaos

High-income crave crowds

High-income avoid crowded bargains

Crowds raise prices for all

If leisured shopping is a normal good, the passage implies that when income rises, demand for it will?

Decrease

Stay unchanged

Become perfectly elastic

Increase