For a monopolist to practice effective price discrimination, one necessary condition is:
a. identical price elasticity among groups of buyers.
b. differences in the price elasticity of demand among groups of buyers.
c. that the product is homogeneous market.
d. none of these.
b
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Pedro's utility of wealth is 6 units for $10,000 and 10 units for $20,000. A friend gave him a lottery ticket for his birthday. The ticket won, giving him either $10,000 with probability 0.5 or $20,000 with probability 0.5
Pedro's expected utility from the lottery ticket is A) between 6 and 8 units. B) equal to 8 units. C) between 8 and 10 units. D) equal to 10 units.
Tariffs result in a decrease in consumer surplus because: a. the price and the quantity consumed of the protected good increases
b. the price and the quantity consumed of the protected good decreases. c. the price of the protected good increases and quantity consumed decreases. d. the price of the protected good decreases and quantity consumed increases.
A rapid, unexpected increase in the inflation rate could make real interest rates negative
a. True b. False Indicate whether the statement is true or false
Refer to the above figure. Line ABCD is a(n)
A. aggregate demand curve. B. natural rate of unemployment curve. C. Phillips curve. D. discretionary-policy curve.