Which of the following is true about price discrimination?
a. When there are a number of competing firms, price discrimination is less likely because competitors tend to undercut the high prices charged those discriminated against.
b. A profit-maximizing seller will charge a higher price for those with a greater willingness to pay, and a lower price for demanders with a lower willingness to
pay.
c. Price differentials between groups will erode if reselling is easy.
d. All of the above are true of price discrimination.
d
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A. Everything else remaining unchanged, what is likely to happen to the demand curve for coffee workers if:
i. there is a fall in the price of coffee. ii. there is an increase in the wage rate. iii. there is a rise in the price of coffee seeds. iv. a new fertilizer that increases the productivity of coffee farmers is invented. b. Everything else remaining unchanged, what is likely to happen to the supply curve of female workers if: i. the opportunity cost of working outside home decreases. ii. there is an increase in the wage rates.
During the middle of the 2000s, the price of gasoline soared and there was a movement to switch to fuels made from a mixture of gasoline and ethanol. Ethanol can be made from corn
The price of corn skyrocketed and then, after a couple of years, the price decreased. What might have led to these price changes in the corn market?
If John drives more recklessly because he has good automobile insurance, it is an example of moral hazard.
Answer the following statement true (T) or false (F)
The aggregate demand curve is
A. vertical. B. U shaped. C. horizontal. D. downward sloping.