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What is an example of a hidden price increase? A. Airlines charging for extra lu

ID: 379445 • Letter: W

Question

What is an example of a hidden price increase? A. Airlines charging for extra luggage b. Selling extended warranties c. Reduced net weight of cereal in the same sized package d. A and C e. All of the above What is an example of a hidden price increase? A. Airlines charging for extra luggage b. Selling extended warranties c. Reduced net weight of cereal in the same sized package d. A and C e. All of the above What is an example of a hidden price increase? A. Airlines charging for extra luggage b. Selling extended warranties c. Reduced net weight of cereal in the same sized package d. A and C e. All of the above

Explanation / Answer

Answer: (c) Reduced net weight of cereal in the same sized package: the hidden price increase is a common strategy which is used in the FMCG industry where the price of the items remain unchanged buy the weight or size reduces. This helps the companies to camouflage the price increase.   

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