Question

2. The owner of grocery store chain is concerned that its managers might be using illegal or unethical pricing strategies.

a) In the table below determine if the strategy is legal or illegal and identify the type of price strategy. (6 points)

Strategy

Legal or Illegal?

The store offers 10% off the customer's entire purchase for senior citizens every Tuesday.

The store charged customers three times the usual amount for canned goods before a winter storm.

Answer 1

Strategy | Legal or Illegal? | Type of Price Strategy
---------|-----------------|-----------------------
The store offers 10% off the customer's entire purchase for senior citizens every Tuesday. | Legal | Discounts
The store charged customers three times the usual amount for canned goods before a winter storm. | Illegal | Price gouging