It is frequently observed that when a city is located next to a major highway, gas stations located close to the highway charge higher prices than gas stations located farther away. This is an example of:
A) first-degree price discrimination.
B) second-degree price discrimination.
C) third-degree price discrimination.
D) illegal price discrimination.
C
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With labor migration, the amount of change in the destination country's wage rates depends on the:
A. Original supply of labor in that country B. Original supply of labor in the country of origin C. Elasticity of demand for labor in that country D. Elasticity of demand for labor in the country of origin
Competition would probably be abolished if society could find a way to abolish
A) inequality. B) scarcity. C) money. D) economists.
Suppose that when the price of ice cream increases, Liza decreases her purchase of hot fudge. To Liza
A) ice cream is a normal good and hot fudge is an inferior good. B) ice cream and hot fudge and substitutes. C) ice cream and hot fudge are normal goods. D) ice cream and hot fudge are complements.
Consider an indifference curve drawn for movies and pizzas. Which of the following statements about this indifference curve is false?
A) As an individual consumes more pizzas, the amount of movies the consumer is willing to give up for an additional pizza increases. B) If the individual consumes more pizzas, the amount of movies consumed must fall if the consumer is to stay on the same indifference curve. C) The indifference curve will be convex to the origin, that is, bowed in toward the origin. D) If the consumer purchases more of movies and pizzas, total utility will increase, but the consumer will be on a new indifference curve that is farther from the origin than the original indifference curve.