If the quantity demanded of personal computers increases by 5% every time the price of personal computers decreases by 10%, the price elasticity of personal computers is (remember to report the absolute value):
a) 4
b) 0.5
c) 1
d) 2
b) 0.5
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When a hair stylist charges men less than women for a haircut because men's hair take less time to cut, the hairstylist is practicing price discrimination.
Answer the following statement true (T) or false (F)
Why might a nation that has an absolute advantage in the production of a good or a service still not be able to find a trading partner?
What will be an ideal response?
All of the following conditions, except one, must exist in order for a firm to successfully practice price discrimination. Which is the exception?
a. The firm must be a price taker. b. The firm must be able to identify which customers are willing to pay more. c. The firm must be able to prevent the resale of its output by low-price customers to high-price customers. d. The firm must be able to charge higher prices to some customers without losing their business. e. The firm must be a price setter.
Which of the following is true?
a. A bondholder owes money to a corporation. b. A corporation owes money to a bondholder. c. A bondholder owns part of a corporation. d. A bondholder votes on company management.