Broker Bethany advertised an apartment for rent at $500 per month, which is $500 below the monthly market rate for that apartment. However, when contacted, Bethany told the interested parties that the apartment rent was actually $1,000 per month. This is an example of a:

Broker Bethany advertised an apartment for rent at $500 per month, which is $500 below the monthly market rate for that apartment. However, when contacted, Bethany told the interested parties that the apartment rent was actually $1,000 per month. This is an example of a:

• A. Bait and Switch
• B. False Advertising
• C. Price Gouging
• D. Market Manipulation

Answer: (A)

The situation described is a clear example of a bait and switch tactic. This occurs when a business advertises a product at a low price to attract customers but does not intend to sell it at that price, instead pushing a higher-priced alternative. In this case, Bethany advertised the apartment at an enticingly low rate of $500 to draw in potential renters, only to inform them later that the actual rent is $1,000. This deceptive practice aims to lure customers into engaging with the business under false pretenses, which violates ethical marketing standards and can also breach consumer protection laws. The other options do not accurately represent the behavior exhibited. False advertising might seem relevant since the initial advertisement was misleading, but the core action of advertising a low price with the intention of selling something more expensive is specifically categorized as bait and switch. Price gouging refers to raising prices significantly during emergencies or high demand, which does not apply here. Market manipulation generally involves actions that distort the pricing of securities or commodities to benefit the manipulator, which is also not applicable in this context.

The situation described is a clear example of a bait and switch tactic. This occurs when a business advertises a product at a low price to attract customers but does not intend to sell it at that price, instead pushing a higher-priced alternative. In this case, Bethany advertised the apartment at an enticingly low rate of $500 to draw in potential renters, only to inform them later that the actual rent is $1,000. This deceptive practice aims to lure customers into engaging with the business under false pretenses, which violates ethical marketing standards and can also breach consumer protection laws.

The other options do not accurately represent the behavior exhibited. False advertising might seem relevant since the initial advertisement was misleading, but the core action of advertising a low price with the intention of selling something more expensive is specifically categorized as bait and switch. Price gouging refers to raising prices significantly during emergencies or high demand, which does not apply here. Market manipulation generally involves actions that distort the pricing of securities or commodities to benefit the manipulator, which is also not applicable in this context.