Refer to Figure 16-3. Suppose Chantal charges all her customers a uniform price of $10 for a haircut. Which of the following statements is true?

A) Chantal is maximizing revenue in market B.
B) Chantal is selling more than the profit-maximizing quantity of haircuts in market B.
C) Chantal is selling less than the profit-maximizing quantity of haircuts in market B.
D) Chantal will earn a greater profit through uniform pricing than if she practices price discriminates.


B

Economics

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You want to buy a TV that regularly costs $250. You can either buy the TV from a nearby store or from a store that's downtown. Relative to going to the nearby store, driving downtown involves additional time and gas. The downtown store, however, has a 10% off sale this week. Last week you drove downtown to save $20 on some concert tickets, a 15% savings. Should you drive downtown to buy the TV?

A. Yes, because you will save more than $20. B. Yes, because you will save 10%, which is better than nothing. C. No, because you will only save 10%, which is less than 15%. D. No, because you will save more than $20.

Economics

In the above figure, CBL is the cost of breaking the law. If it is illegal to sell, but not illegal to buy, then the price per unit will be

A) $500. B) $400. C) $300. D) $200.

Economics

Citizens Bank confronts a reserve requirement of 20 percent and currently holds millions of dollars in excess reserves. If a depositor withdraws $35,000 . the excess reserves of the bank will

a. decline by $7,000. b. decline by $35,000. c. decline by $28,000. d. increase by $7,000.

Economics

This curve shows there is a(n) ______ relationship between the quantity of real GDP demanded and the overall price level.



a. inverse
b. neutral
c. positive
d. indeterminate

Economics