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
You might also like to view...
The above figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from S0 to S1
The quantity of buckets without the tax is ________ and the quantity with the tax is ________. A) 400; 600 B) 600; 400 C) 400; 400 D) 800; 500 E) 600; 500
C = 3,600 + (mpc)y
I = 1,200 G = 1,400 NX = -200 If the equilibrium level of GDP is $30,000, using the equations for C, I, G, and NX shown above, find the value of the marginal propensity to consume. What will be an ideal response?
Monetarists argue that aggregate demand is
A) vertical. B) horizontal. C) relatively unaffected by autonomous spending shifts. D) relatively unaffected by changes in the money supply.
A prisoner's dilemma is
A) stable. B) the best equilibrium possible. C) inefficient. D) efficient.