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A Company Manufacturing Shampoo Charges a Low Price to Customers

Question 45

Multiple Choice

A company manufacturing shampoo charges a low price to customers who buy sachets on the premise that since they belong to lower income groups they are more price sensitive.It charges higher prices to customers who buy shampoo bottles.This is an example of:


A) predatory pricing.
B) vertical price fixing.
C) horizontal price fixing.
D) price discrimination.
E) bait and switch.

Correct Answer:

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