The practice of charging customers different prices for the same good is called:
A. price discrimination.
B. price marking.
C. group discounting.
D. customer discrimination.
A. price discrimination.
You might also like to view...
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
A tax is imposed on orange juice. Consumers will bear more of the burden of the tax: a. If the demand for orange juice is relatively inelastic and the supply is relatively elastic. b. If the demand for orange juice is relatively elastic and the supply is relatively inelastic. c. If the supply for orange juice is perfectly inelastic
d. none of the above
If an economy is experiencing both full employment and price stability, within the Keynesian model, a major tax reduction probably would cause
a. an increase in unemployment in the near future. b. an increase in the general level of prices unless government expenditures are also reduced. c. an increase in the interest rate since individuals will reduce their savings in response to the tax cut. d. a decrease in consumption unless the expected budget deficit is financed by selling bonds to foreigners.
Arbitrage equalizes rates of return across similar investments because:
A. arbitrage also equalizes the prices of the assets. B. investors prefer diversity. C. investors will want to replace lower rate of return assets with those generating higher rates of return. D. investors will want to replace higher rate of return assets with those generating lower rates of return.