A group price discriminator sells its product in Florida for three times the price it sets in New York. Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is -2
0, the demand in Florida A) has an elasticity of -6.0.
B) is more price elastic than the demand in New York.
C) has an elasticity of -1.2.
D) has an elasticity of -0.67.
C
You might also like to view...
The end of a recession is called the:
A. boom. B. expansion. C. trough. D. peak.
In the above figure, the equilibrium level of planned saving plus net taxes is
A) $1.0 trillion. B) $2.0 trillion. C) $3.0 trillion. D) $4.0 trillion.
Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3. They agree to split the lunch bill evenly. Ed chooses a hot dog. The marginal cost to Joe then of ordering a hamburger instead of a hot dog is
What will be an ideal response?
Exhibit 19-4 Balance sheet of Tucker National Bank Assets Liabilities Required reserves$ 4,000 Checkable deposits$20,000 Excess reserves16,000 Loans 0 Total$20,000 Total$20,000 In Exhibit 19-4, the bank could make:
A. $1,000 in new loans. B. $4,000 in new loans. C. $16,000 in new loans. D. $20,000 in new loans.