Why do price discriminating firms often offer lower prices to children and the elderly?
A. Such a strategy lowers the costs of the firm.
B. Their demand for goods and services tends to be less elastic than other consumers.
C. They have a lower willingness to pay than other consumers.
D. These firms are more interested in equity than profit maximizing.
Answer: C
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What can one learn from the following figure?
What will be an ideal response?
A tariff differs from a quota in that a tariff is a. levied on imports, whereas a quota is imposed on exports
b. levied on exports, whereas a quota is imposed on imports. c. a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported. d. a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.
An increase in a product's price will shift the labor demand curve for workers who produce that product to the left
a. True b. False Indicate whether the statement is true or false
Linda committed a traffic violation that resulted in an accident. She learns first that the violation will result in a $500 fine; she then learns that she will have to pay another $500 for damage caused in the accident. According to prospect theory,
A. she will suffer as much disutility from paying for the accident damage as she does from paying the fine. B. she will suffer less disutility from paying for the accident damage than from paying the fine. C. she will suffer more disutility from paying for the accident damage than from paying the fine. D. she will feel less disutility from paying $1,000 than she would receive positive utility from receiving $1,000.