The Internet has intensified competitive rivalry

La Belle released a cut glass bottle of perfume at $299 per item, even though its major competitor prices its signature scent at $99 per item. La Belle reasons that customers in search of luxury goods will prefer its product because they are likelier to believe that high price indicates superior quality. What price adjustment strategy is evident in its reasoning?

A) seasonal pricing B) time-based pricing C) captive product pricing D) psychological pricing E) location-based pricing

Barter Company borrows $20,000 for one year a 9% interest, but must maintain a $1,600 compensating balance. The effective rate of interest on this loan is

a. 9.0%. b. 17.0%. c. 9.8%. d. 8.0%.