Suppose there are two markets for football games: rich alumni as fully committed as the lower-income students to their alma mater. Based on this information, which market has the lower price elasticity of demand and pays the higher price if the university price discriminates?
a. The alumni market
b. The student market
a
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If enforcement is aimed at buyers of an illegal good, the result will be
A) an increase in the short-run supply of the good. B) a decrease in the short-run supply of the good. C) a decrease in demand for the good. D) an increase in the price of the good.
If the businesses last forever, then the Nash Equilibrium is
a. for one firm to charge a HP forever b. for your firm charge a LP when the other firm does c. for each firm to charge HP until the rival does, and then to charge a LP forever. d. for each firm to charge LP until the rival does, and then to charge a HP forever.
If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are less than the external costs,
a. More than the efficient amount is being produced b. Less than the efficient amount is being produced c. the efficient amount is being produced d. We do not know whether the efficient amount, or more or less, is being produced.
Keough plans and IRAs are
A) individual pension plans. B) government pension plans. C) corporate pension plans. D) public pension plans.