A hardware store advertises a 3/8" Black and Decker Power Drill for $29.95. You enter the store intending to purchase the drill. The salesperson informs you that they are all sold out. She tells you that the sale drills were factory seconds and that if you are going to be doing any kind of serious woodworking, you should buy the Model 3309, which sells for $49.99. This scenario has elements of which type of illegal pricing practice?
A) predatory pricing
B) price discrimination
C) price fixing
D) bait and switch
E) conditional bargains

Question

Quizplus · Accepted Answer

This scenario describes "bait and switch," where a store advertises a product at a low price to attract customers but then tries to sell them a more expensive item when the advertised product is unavailable.

A Hardware Store Advertises a 3/8" Black and Decker Power