When a seller advertises an item at an unbelievably low price to lure customers into a store, and then refuses to sell the advertised item and instead pushes a similar item with a much higher price and higher margin, the seller is participating in the illegal practice of ________.
A) price fixing
B) price discrimination
C) psychological pricing
D) bait and switch
E) predatory pricing

Question

Quizplus · Accepted Answer

Bait and switch is a deceptive practice in which a seller advertises a product at an attractive price to lure customers in, but then tries to sell them a more expensive product by claiming that the advertised product is no longer available or is of poor quality. This practice is illegal and is considered a form of false advertising.

When a Seller Advertises an Item at an Unbelievably Low