Final answer:
Businesses can use price discrimination strategies to divert attention from the real price in certain situations, such as when buyers infer product quality from market price. Additionally, businesses that underpay workers may face market pressure to improve.
Step-by-step explanation:
Under certain circumstances, businesses may be successful in using price discrimination strategies that divert consumers' attention away from the real price they are being charged. One such circumstance is when buyers use the market price to infer the quality of products.
For example, a used car dealer may lower prices to sell a greater quantity, but buyers may assume that the lower price signals low-quality cars. Conversely, if the dealer raises prices, customers may assume higher quality. Another circumstance is when a discriminatory business underpays its workers, leading them to leave for better-paying jobs. Market pressure may then force the business to behave better.