Related to the Economics in Practice on page 267: When trying to determine the price to charge for a new product, firms sometimes charge one price in one market and another price in a second market. Firms call this approach
A. using a focus group.
B. test marketing.
C. price rationing.
D. benchmark pricing.
Answer: B
You might also like to view...
A change in financial technology that reduces the need to hold cash balances ________ the demand for money and ________ the equilibrium nominal interest rate
A) increases; raises B) decreases; lowers C) increases; lowers D) decreases; raises E) decreases; does not change
Which of the following models depicts the role of money as affecting only the price level in the short run?
a. The new classical model b. The Keynesian model c. The real business cycle model d. The monetarist model
For the period from 2030 through 2085, the annual deficits of Social Security (in present value terms)
A. increase from approximately $350 billion per year to nearly $1 trillion per year. B. run approximately $12 billion per year. C. run approximately $3 trillion per year. D. run approximately $0.
Tom is maximizing utility by buying three packs of bubble gum and four packages of Skittles. Given diminishing marginal utility, if the price of Skittles rises, the principle of rational choice tells us that Tom will buy:
A. more Skittles, raising the opportunity cost of not consuming Skittles. B. fewer Skittles, lowering the opportunity cost of not consuming Skittles. C. fewer Skittles, raising the opportunity cost of not consuming Skittles. D. more Skittles, lowering the opportunity cost of not consuming Skittles.