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Why Might Luxury-Goods Retailers Limit Purchases on a Good by Consumers

Question 19

Multiple Choice

Why might luxury-goods retailers limit purchases on a good by consumers "due to popular demand"?


A) Because they are worried about running out of supply, leaving some of their customers unhappy that they can't buy the good.
B) Because they are trying to use scarcity as a way to improve the brand image of the good.
C) Because they are limiting the possibility of arbitrage, where consumers buy in a low price area and resell in a higher price area.
D) Because they are worried that they'll run out of the good during the all-important holiday season.

Correct Answer:

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