All of the following are true, except
a. Some consumers may infer high prices of a good to signal high quality
b. Low prices can also signal high quality
c. Promotional campaigns do not affect consumer's perception on quality
d. It makes more sense to raise price when advertising makes demand less elastic
c
You might also like to view...
Which of the following countries imposes significant tariffs on its agricultural exports?
A) Argentina B) The U.S. C) Canada D) France.
The natural right to life, liberty and pursuit of happiness is an idea of:
a. Hayek b. Schumpeter c. Marx d. Lange e. Locke
If the federal funds rate were above the level the Federal Reserve had targeted, the Fed could move the rate back towards its target by
a. buying bonds. This buying would reduce reserves. b. buying bonds. This buying would increase reserves. c. selling bonds. This selling would reduce reserves. d. selling bonds. This selling would increase reserves.
Unexpected inflation redistributes income:
a. away from workers with cost-of-living adjustments, benefiting employers. b. away from renters, benefiting landlords. c. away from poor people, benefiting the rich. d. away from people with fixed incomes, benefiting people with fixed costs. e. away from debtors, benefiting creditors.