Firms price discriminate
A) to take advantage of customers.
B) to reduce the quantity sold so as to reduce production costs.
C) to increase profits.
D) to increase total economic surplus.
C
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A 10 percent increase in the price of neckties leads to a 5 percent decrease in the quantity demanded of neckties. The absolute price elasticity of demand is
A) 3. B) 0.33. C) 0.5. D) 2.
Jessica receives a raise at her current part-time job from $9 to $11 per hour. If her labor supply curve is backward sloping, she will work fewer hours after receiving the pay raise
a. True b. False Indicate whether the statement is true or false
Which of the following exemplifies how big-box retailer, such as Walmart or Target, benefits from economies of scale?
a. Each location performs its own negotiations for the purchase of wholesale stock. b. Staff at big-box stores are better positioned to get to know regular customers and connect with them. c. Large-scale ordering allows the purchase of stock at lower costs than smaller firms. d. The web ordering system has become popular with customers who prefer shopping online.
Refer to the above diagram. If AD1 shifts to AD2, then the equilibrium output and price level will be:
A. P1Q3. B. P1Q2. C. P2Q3. D. P2Q2.