Which of the following is an example of anchoring in retail prices?
A) Price tags on the merchandise list a "high" price that is charged at a competing retailer and the a much lower price that the store actually charges.
B) An appliance store lists a commercial-quality coffee maker that has high capacity and is very expensive, and all of the other coffee makers are smaller and less expensive.
C) Restaurant menus include a premium entree like a steak and lobster dinner that is very expensive, and all of the other entree choices are priced at lower values.
D) all of the above
D
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The table below shows the weekly supply for hamburgers in a market where there are just three sellers.PriceSeller 1 Qs 1Seller 2 Qs 2Seller 3 Qs 3$5854464334322221If the price of a hamburger increases from $2 to $4, then the weekly market quantity of hamburgers supplied will
A. increase from 5 to 13. B. decrease from 9 to 5. C. decrease from 13 to 5. D. increase from 5 to 9.
The minimum point on the average variable cost curve is called the loss-minimizing point
Indicate whether the statement is true or false
A monopoly is:
a. a seller of a highly advertised and differentiated product in a market with low barriers to entry in the long run. b. the only seller of a good for which there are no good substitutes in a market with high barriers to entry. c. the only buyer of a unique raw material. d. the producer of a product subsidized by the government.
The marginal cost is the
a. same as the variable cost when output is increasing b. change in total cost as the quantity changes by one unit c. change in average variable cost as the quantity changes by one unit d. change in total fixed cost as the quantity changes by one unit e. same as the fixed cost when average fixed cost is at a minimum