Which of the following is NOT necessary for price discrimination to occur?
A) The firm must be able to separate the market into identifiable groups.
B) The firm must be selling a durable good.
C) The firm must have a downward sloping demand curve.
D) The firm has to be able to prevent resale of the product or service.
Answer: B
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The above figure shows the Lorenz curves for four different countries. In which country is income most equally distributed?
A) country A B) country B C) country C D) country D
In Singapore the government places a $5,000 tax on the buyers of new automobiles. After the purchase of a new car, a buyer must pay the government $5,000. How would the imposition of the tax on buyers be illustrated in a graph?
A) The tax will shift both the demand and supply curves to the right by $5,000. B) The tax will shift the demand curve to the right by $5,000. C) The tax will shift the supply curve to the left by $5,000. D) The tax will shift the demand curve to the left by $5,000.
In a competitive market, excess demand for a good exists whenever
a. the current price is below the equilibrium price b. resources are scarce c. the quantity supplied at the current price exceeds the quantity demanded d. sellers are subject to the constraints imposed by input prices and technology e. the current price is above the equilibrium price
Which of the following refers to a two-way trade in which a country both exports and imports the same or very similar products?
A. Inter-industry trade B. Intra-industry trade C. Net trade D. Internal trade