Are restaurant coupons a form of price discrimination? Why or why not?
What will be an ideal response?
Yes, coupons are a form of price discrimination. People who are willing to take the time to clip coupons have a higher price elasticity of demand than people who are not. Coupons are a way for firms to cut the price paid by higher price elasticity consumers—without having to cut the price for everyone else.
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If the Habakkuk thesis had been correct—unamended by Rosenberg, David and others—a long-run decline in the supply of agricultural productivity west of the Appalachians would be matched by a proportional
(a) decline in the productivity growth in eastern manufacturing. (b) increase in productivity in eastern manufacturing. (c) rise in American food imports. (d) rise in American exports of manufacturing.
The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. If a $1 tariff is imposed on imported rice, the change in consumer surplus is
A) c + d. B) c + d +g. C) a + b + c + d. D) f + g.
State and local governments in 2007 accounted for approximately _____ percent of all government spending
a. 15 b. 25 c. 60 d. 85 e. 40
If we assume that velocity is constant, and if the money supply increases by 5 percent, we would expect, ceteris paribus, that the price level would
A. increase by 5 percent. B. decrease by 5 percent. C. increase by 1 percent. D. decrease by 1 percent.