When the firm is able to perfectly price discriminate, each unit is sold at its:
a. peak load price
b. reservation price.
c. cost price.
d. market price.
b
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How would the following events affect the market demand for laser printers?
a) A recession in the economy leading to a fall in income levels b) A five-fold increase in the price of printing paper What will be an ideal response?
Perfume industry statistics show that over the past five years, the number of bottles of perfume sold decreased by 30%, but the total dollar amount spent by consumers was unchanged. This means that
A. consumers were unresponsive to changes in price, i.e., the percentage change in quantity demanded was less than the percentage change in price. B. demand was unitary elastic. C. demand was elastic. D. demand was inelastic. E. both a and c
Which of the following could best be categorized as a public good?
A) an apartment in a public housing project B) a pumpkin pie C) public fireworks D) a race track
Which of the following statements is true of a monopolist's supply curve?
A) The supply curve is vertical. B) The supply curve is upward sloping. C) The supply curve is downward sloping. D) A monopolist does not have a supply curve.