In order to practice price discrimination, a firm must be in a market such that the consumers in its market:
A. all have identical tastes.
B. all have identical price elasticities of demand.
C. have different price elasticities of demand.
D. have the same demand for its product.
Answer: C
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Use the figure below to answer the following question.
Refer to the three demand curves. An "increase in quantity demanded" caused by a change in price would be illustrated by a change from
A. point 2 to point 5. B. point 4 to point 6. C. point 4 to point 1. D. point 5 to point 1.
In 2007 the real interest rate in the United States was 2 percent. By 2013, the equilibrium real interest in the United States was ________ because the ________
A) 0.5 percent; United States experienced a deep recession as a result of a financial crisis in 2008-2009 B) 0.5 percent; United States began to recover from the deep recession and financial crisis of 2008-2009 C) 3.5 percent; United States began to recover from the deep recession and financial crisis of 2008-2009 D) 3.5 percent; United States experienced a deep recession as a result of a financial crisis in 2008-2009 E) not yet calculated; effects of the financial crisis of 2008-2009 have not yet been tallied The figure above shows the demand for loanable funds curve.
The fact that airlines offer off-peak airline discounts rather than peak-time surcharges is an example of:
A. framing effects. B. non-zero sum game. C. the endowment effect. D. irrational behavior.
Most economists do not advocate a return to the gold standard because:
A. past willingness to exit the Gold Standard casts doubt on the credibility of committing to it again. B. it forces the central bank to fix the price of something we don't really care about while other prices can fluctuate a lot. C. inflation will depend on the rate that gold is mined. D. all of the answers given are correct.