When a firm charges 4.95 instead of 5.00, what do economists call ...

[theo]

When a firm charges 4.95 instead of 5.00, what do economists call this pricing strategy?
 
  A) indirect pricing B) cost-plus pricing C) odd pricing D) unusual pricing

Question 2

Increases in the price level will
 
  A) raise consumption because some goods and services are more affordable.
  B) raise consumption because real wealth increases.
  C) lower consumption because real wealth decreases.
  D) lower consumption because goods and services are less affordable.

[tofugiraffe]

Answer to Question 1

C

Answer to Question 2

C

[theo]

YES! Correct, THANKS for helping me on my review

[Alyson.hiatt@yahoo.com]

Excellent