Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. _____ includes practices such as falsely advertising factory of wholesale prices or a large price reduction from a phony high retail price ?
Correct answer: C. Deceptive pricing
- A. Deceptive promotion
- B. Deceptive packaging
- C. Deceptive pricing
- D. Deceptive cost structure
Explanation
Deceptive pricing occurs when sellers misrepresent the regular price, such as claiming a discount from a fictitiously high retail price. Deceptive promotion concerns misleading advertising claims more generally, while this example directly misrepresents price.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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