Which is one of the conditions that must be realized before a seller finds that price discrimination is workable?
A. The buyer must be able to resell the product at a higher price to other consumers.
B. The product must be a service because demand is more elastic for services.
C. The seller must be able to segregate buyers based on a willingness to pay.
D. The demand for the product is perfectly elastic so any price can be charged for the product.
Answer: C
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Let the marginal leakage rate be 0.5 while the marginal propensity to consume is 0.8. Then a $50 million reduction in autonomous taxes will cause autonomous consumption to ________ and equilibrium income to ________
A) fall by $50 billion; fall by $100 billion B) rise by $50 billion; rise by $100 billion C) fall by $40 billion; fall by $200 billion D) rise by $40 billion; rise by $80 billion
Which of the following is correct?
a. An increase in the money supply causes the interest rate to decrease so that aggregate demand shifts left. b. An increase in stock prices reduces consumption spending so that aggregate demand shifts left. c. An increase in the price level causes the exchange rate to rise so that aggregate demand shifts left. d. A recession in other countries reduces U.S. net exports so that U.S. aggregate demand shifts left.
Meaning well, your grandmother gives you a new wool sweater for your birthday that she knitted herself. You, however, hate wearing wool. What is the utility problem that you face? What can you do to remedy the problem?
Please provide the best answer for the statement.
Which of the following had prompted the Chinese authorities to stand ready to buy or sell dollars steadily and in large volume?
A. Huge current account deficit B. Currency pegged to the dollar C. Floating rate policy D. Adherence to the old gold standard