Price deals that mislead consumers fall into which category of pricing?

• A. Predatory pricing
• B. Penetration pricing
• C. Cost-plus pricing
• D. Deceptive pricing

Answer: (D)

Verified step by step guidance

1. Understand the concept of pricing strategies and categories in microeconomics, which describe how firms set prices to achieve different objectives.
2. Review the definitions of the given pricing types: Predatory pricing involves setting very low prices to eliminate competitors; Penetration pricing is setting low prices initially to enter a market; Cost-plus pricing adds a markup to the cost of production.
3. Recognize that 'Price deals that mislead consumers' refers to pricing practices that deceive or confuse buyers about the true cost or value of a product.
4. Identify that such misleading price deals fall under the category of 'Deceptive pricing,' which is a practice designed to mislead consumers rather than reflect actual costs or competitive strategies.
5. Conclude that among the options, 'Deceptive pricing' best fits the description of price deals that mislead consumers.