Which of the following is a necessary condition for price discrimination?
a. The seller must be able to divide the markets according to the different price elasticities of demand.
b. It must be difficult for one buyer to resell to another buyer.
c. Both a and b.
d. Neither a nor b.
c
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Using Figure 9.1, explain what a firm would do in the short run if the market price of its product dropped below P1
What will be an ideal response?
In the long-run, an increase in aggregate demand increases the price level, but not real GDP
a. True b. False Indicate whether the statement is true or false
On October 24, 1929, the stock market crashed. By the end of the year, over $40 billion of wealth had vanished. Which of the following indicates the appropriate change in the U.S. economy?
A. The economy moved up along the aggregate demand curve B. The economy moved down along the aggregate demand curve. C. Aggregate demand shifted to the left. D. Aggregate demand shifted to the right.
Banks and other financial institutions:
A. are the primary investors in equipment, factories, and other capital goods. B. lack relevance in the modern economy because they focus primarily on financial assets and generally do not engage in real investment activity. C. promote economic growth by helping to direct household saving to businesses that want to invest. D. often hinder economic activity by creating barriers between household savers and firms wanting to invest in capital goods.