Which of the following best completes the statement: price deals that _____ fall into the category of deceptive pricing?

• A. are set below the equilibrium price
• B. occur in perfectly competitive markets
• C. mislead consumers about the actual savings or value
• D. are regulated by government-imposed price floors

Answer: (C)

Verified step by step guidance

1. Understand the concept of deceptive pricing: it refers to pricing strategies that mislead consumers about the true cost, savings, or value of a product or service.
2. Analyze each option in the context of deceptive pricing: pricing below equilibrium price is a market outcome, not necessarily deceptive; perfectly competitive markets have many sellers and transparent prices, so deceptive pricing is less likely; government-imposed price floors regulate minimum prices but do not inherently involve deception.
3. Focus on the option that involves misleading consumers about actual savings or value, as this directly relates to the definition of deceptive pricing.
4. Recall that deceptive pricing often involves tactics like false discounts, hidden fees, or exaggerated claims about savings, which mislead consumer perception.
5. Conclude that the best completion of the statement is the option that highlights misleading consumers about actual savings or value, as this captures the essence of deceptive pricing.