An automobile company published an advertisement that said that prices for the latest model on offer started at $10,000 with an interest rate of 10 percent.The ad showed the logo and picture of a new model.When an interested customer spoke with the authorized dealer mentioned in the ad, he was informed that the bargain price was only on the older model.This is an example of:
A)price fixing.
B)price discrimination.
C)predatory pricing.
D)misleading advertising.
E)resale price maintenance.

Question

Quizplus · Accepted Answer

This is an example of misleading advertising, as the advertisement suggests a starting price for the latest model but in reality, the price is only applicable to the older model. This can mislead customers and is a violation of advertising laws.

An Automobile Company Published an Advertisement That Said That Prices