For Many Products, Such as Fast Foods, a Variety of Prices

Multiple Choice

For many products, such as fast foods, a variety of prices can be found, but sellers with higher prices can expect to sell their products because

A) consumers are not sensitive to prices.
B) arbitrage will quickly eliminate price differences.
C) firms differentiate products in many ways, for example, higher-priced fast food restaurants may offer better service.
D) their demand is perfectly inelastic.