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Price Discrimination-A Christmas Story

Last updated 5 months ago

4 questions

1

1

1

1

Question 1

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

Question 2

2.

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

Question 3

3.

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

Question 4

4.

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