A major fruit juice manufacturer failed in its attempt to engage in price discrimination between students and all other consumers. What is the most likely explanation for this failure?
a. There was nothing to prevent the students from reselling the fruit juice to other consumers.
b. The two groups of consumers have different demand elasticities for fruit juice.
c. The cost of producing the product is relatively high.
d. Market demand for fruit juice is inelastic.
A
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A. demand is less than supply. B. the current price is lower than the equilibrium price. C. supply is less than demand. D. quantity demanded is lower than quantity supplied.
Assume that you are a policy adviser who believes that money demand is highly interest-sensitive but investment is not. Asked your advice on how to pull the economy out of a recession, you are likely to emphasize
A) contractionary monetary policy. B) expansionary monetary policy. C) contractionary fiscal policy. D) expansionary fiscal policy.
Conglomerate mergers involve more than two firms
a. True b. False
If we know that the demand curve for good x fails to reflect the total value to society of that good, then we know that
a. the market for good x is characterized by an externality, but we cannot determine whether the externality is positive or negative from this fact alone. b. the market for good x is characterized by a positive externality. c. the market for good x is characterized by a negative externality. d. the supply curve for good x fails to reflect the cost to society of producing that good.