Author Question: The use of most-favored-customer clauses is an example of A) incenting members to maintain the ... (Read 67 times)

penguins · **on:** Jul 1, 2018

The use of most-favored-customer clauses is an example of

A) incenting members to maintain the cartel, because if they lower the price for one customer, they have to lower it for previous customers as well.
B) incenting members to maintain the cartel, because if they raise the price for one customer, they have to raise it for previous customers as well.
C) giving customers special perks for purchasing goods from members of the cartel.
D) selling higher quality goods and services to favorite customers.

Question 2

If the price of a slice of pizza rises from 2.50 to 3, and quantity demanded falls from 10,000 slices to 7,400 slices, using the formula for arc price elasticity what is the percentage change in quantity?

A) -18.18
B) -29.89
C) -26
D) -35.14