Author Question: Which of the following is an example of anchoring in retail prices? A) Price tags on the ... (Read 59 times)

SGallaher96 · **on:** Jul 1, 2018

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

Question 2

Use the following two statements to answer this question: I. The price elasticity of demand is constant along the entire length of a linear demand curve. II.

The price elasticity of demand is the special name that economists give to the slope of a demand curve. A) I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) I and II are false.