Log in
Sign up for FREE
arrow_back
Library
Price Discrimination-A Christmas Story
By Michael Burbine
star
star
star
star
star
Share
share
Last updated 6 months ago
4 questions
Add this activity
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