Which of the following is an example of a "damaged goods" strategy
a. A supermarket offers free parking space but charges higher for groceries
b. A television reseller spends time making sure that the picture quality of the bargain priced sets is fuzzy
c. A gift store hikes up the prices on gift wrapping services during its seasonal sale
d. All of the above
b
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What is meant by imperfect information?
What will be an ideal response?
Refer to the Article Summary. Assume that more foreign governments and hospitals begin to offer and publicize their medical services to American medical tourists and, due to the growing number of aging baby boomers, more Americans desire hip-
replacement surgery. All else equal, what will happen in the market for hip-replacement surgery as a result of these two factors? A) Demand will increase, but these two factors will not shift the supply curve. B) Demand and supply will both increase. C) Demand will increase and supply will decrease. D) Supply will increase, but these two factors will not shift the demand curve.