Many bars close to campuses have started offering cheaper beer to consumers with a student ID. These bars
a. Assume students have a inelastic demand curve
b. Assume students have an elastic demand curve
c. Are practicing price discrimination
d. Both b and c
d
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Unemployment rates differ widely among various groups in the population
a. True b. False Indicate whether the statement is true or false
Jonathan sells tacos in the main plaza of a town in Idaho. There are three other vendors in the other corners of the plaza selling tacos of the same quality. If the market demand for tacos decreases in such a way that Jonathan's total revenue is less than his total cost, he will: a. raise the price of tacos to increase his revenue. b. reduce costs to increase his profit margin
c. shut down his business immediately. d. produce the quantity that minimizes his losses.
Which of the following Lorenz curves is closest to the diagonal line?
A. The after-transfer income distribution B. The after-tax income distribution C. The before-tax distribution of income D. The before-tax, before-transfer income distribution
If the percent change in real GDP is 5 percent and inflation rate is 1 percent, what is the percent change in nominal GDP?
A. 2 percent. B. 4 percent. C. 0 percent. D. 6 percent.