In third-degree price discrimination, markets with a larger price elasticity of demand are ________ responsive to price changes and are charged ________ prices than markets with a smaller price elasticity of demand.
A) less; lower B) more; higher C) more; lower D) less; higher
C) more; lower
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The basic difference between macroeconomics and microeconomics is:
a. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. b. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms. c. microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. d. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.
In a past fare war, U.S. Air reduced the price of its Charlotte, North Carolina, to New York City round-trip fare from $198 to $138 to match American Airlines. U.S. Air did so reluctantly, saying it would cost the company millions of dollars in revenue
American, on the other hand, believed the fare cut would increase its revenue. What different assumptions about the underlying price elasticity of demand did each airline believe true?
A decrease in the reserve requirement will cause a decrease in the money multiplier.
a. true b. false
According to the No Marginal Improvement Principle for Boundary Choices, if X* is a best choice, then:
A. if only a marginal increase in the activity level is possible, the MB ? MC at X*. B. if only a marginal increase in the activity level is possible, the MB ? MC at X*. C. if only a marginal decrease in the activity level is possible, the MB ? MC at X*. D. MB = MC at X*.