Dual entitlement implies that a firm can increase the price of a good under all of the following conditions EXCEPT

Question

Quizplus · Accepted Answer

Dual entitlement suggests that consumers perceive price increases as fair when they are justified by increased costs to the firm, such as higher oil prices, supplier issues, or wage increases. However, an increase in demand or preference does not justify a price increase under this principle.

Dual Entitlement Implies That a Firm Can Increase the Price