A price discriminating monopolist charges a very high price to the consumers with high price elasticity of demand
a. True
b. False
Indicate whether the statement is true or false
False
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When the exchange rate is allowed to shift gradually over time, or within an exchange rate band which may also shift over time, this is considered a(n):
A) fixed exchange rate. B) managed float. C) flexible exchange rate. D) none of the above.
Which of these equations is correct?
A. APC - APS = 1 B. MPC + APS = 1 C. MPC + MPS = 1 D. 1 + MPC = MPS
The demand for the Franconian franc in the foreign exchange market equals 14,000 - 3,000e and the supply of francs in the foreign exchange market equals 2,000 + 2,000e, where e is the nominal exchange rate expressed in U.S. dollars per franc. If the franc is fixed at 3 U.S. dollars per franc, then to maintain this fixed rate Franconia's international reserves must:
A. increase by 3,000 francs per period B. decrease by 9,000 francs per period C. increase by 9,000 francs per period D. decrease by 3,000 francs per period
Suppose interest rates in foreign countries increase relative to the U.S. interest rate. As a result, there is ________ the demand curve for dollars
A) a downward movement along B) a leftward shift of C) a rightward shift of D) an upward movement along E) neither a movement along nor a shift of