Making Inferences: A local supermarket decides to sell a premium brand of meats and cheeses in its deli department. This brand is priced about $2 more per pound than the store brand. About
80 percent of the space in the deli display cases is devoted to the premium brand and 20 percent
to the store brand.

a. How did price serve as an incentive to the supermarket?

b. What kind of signals is the supermarket sending to its customers with this pricing strategy?