You produce stereo components for sale in two markets, foreign and domestic, and the two groups of consumers cannot trade with one another. You will charge the higher price in the market with the
A) lower own price elasticity of demand (more inelastic demand).
B) higher own price elasticity of demand (more elastic demand).
C) larger teenage population.
D) greater consumer incomes.
A
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Refer to Scenario 15-5. How much additional profit can the airline earn by charging each customer their willingness to pay relative to charging a flat price of $600 per ticket?
a. $15,000 b. $25,000 c. $40,000 d. $70,000
A price floor that is set below the equilibrium price
A) causes suppliers to lower their prices. B) is binding. C) is non-binding. D) creates a shortage.
Those who are chronically poor are defined as those who spend:
A. three or more consecutive years in poverty. B. at least two consecutive months within a year in poverty. C. three or more years in poverty. D. at least six consecutive months within a year in poverty.
A competitive firm's profit-maximizing sales quantity ______ when the market price increases.
A. cannot decrease B. cannot increase C. may increase or decrease D. will always decrease