Price discrimination requires ______.
a. different demand curves for different markets
b. identical demand curves for different markets
c. inelastic customer demand
d. a single market for a product
a. different demand curves for different markets
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Suppose you solve a consumer's constrained 2-good optimization problem for a given economic environment --- and your answer contains a negative consumption level of good 2. Which of the following is a valid conclusion on your part:
A. The true optimum has the consumer consume none of good 1. B. The true optimum has the consumer consume none of good 2. C. There are multiple "true" optimal consumption bundles. D. The consumer will sell good 2. E. None of the above.
Holding other things constant, decreases in the price level in the US will
a. Cause the dollar to gain value b. Cause the dollar to lose value c. Does not affect the dollar value d. None of the above
In the figure above, suppose the economy is initially at point B. Then the interest rate in Japan rises relative to the interest rate in the United States. This change ________ the supply of dollars and the market moves to a point such as ________
A) decreases; A B) decreases; E C) increases; D D) increases; C
At the current price of a good, Al's consumer surplus equals eight, and Ben's consumer surplus equals 15. By charging a two-part tariff, a monopolist could increase his profit by
A) 8. B) 16. C) 15. D) 30.