Selling similar merchandise at a price above the competition is done with the hope of selling greater quantities of the merchandise and attracting more customers to the store.

False

Explanation:

In order to attract more customers to your store and sell larger quantitative, you must sell at a price below the competition, not above.

Rational customers should purchase at the lowest possible price, that is the basic concept behind the law of supply and demand. A lower price should result in a higher quantity demanded.  

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