If a monopoly charges higher prices to consumers who buy smaller quantities than to consumers who buy larger quantities, then
A) consumers who buy larger quantities have a higher price elasticity of demand.
B) consumers who buy larger quantities have a lower price elasticity of demand.
C) consumers who buy smaller quantities have a lower price elasticity of demand.
D) Both A and C.
D
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In the equation S = Y - C, in order to interpret Y as disposable income, it is necessary to interpret S as ________ saving
A) private B) national C) government D) business
An income tax is progressive if the
a. tax rate decreases as income increases. b. percentage of income paid in taxes increases as income increases. c. percentage of income paid in taxes stays the same regardless of the size of income. d. dollar amount paid in taxes increases with income.
An increase in the price of a good would
a. increase the supply of the good. b. increase the amount purchased by buyers. c. give producers an incentive to produce more. d. decrease both the quantity demanded of the good and the quantity supplied of the good.
Which of the following would be included in the Consumer Price Index?
a. the price of U.S.-made steel b. how much Americans spent on medical care in the previous year c. the average price of a hamburger d. the average cost of building a public school