Recall the Application about low-price guarantees and the prices of tires to answer the following question(s).
-Recall the Application. A study of the retail tire market suggests that prices are ________ in markets where firms offer low-price guarantees.

Question

Quizplus · Accepted Answer

Studies have shown that in markets where firms offer low-price guarantees, prices tend to be generally higher. This is because such guarantees can discourage consumers from shopping around, leading them to believe they are already getting the best deal, which in turn reduces competitive pressure on prices.

Recall the Application About Low-Price Guarantees and the Prices of Tires