Which of the following supermarket strategies to increase sales would be most consistent with a neoclassical economics (versus behavioral economics) approach?

A) holding posted prices constant but reducing package sizes
B) providing discounts for buying in bulk
C) placing the most frequently purchased items at the back of the store
D) positioning high-profit kids cereals on the lower shelves of the cereal aisle

Question

Annie Masterson · Accepted Answer

Final Answer : B, Explanation :  Neoclassical economics assumes that consumers are rational and seek to maximize utility based on prices and their budget constraints. Providing discounts for buying in bulk appeals directly to this rational decision-making process, as it offers a clear economic incentive for purchasing more items.

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