Third-degree price discrimination for concessions at ball parks is not applied to adults and children because_____.

A. children's demand for food is elastic and adults' demand for food is inelastic
B. there can be exchange of the products from children, who could buy them at a lower price, to adults
C. adults' demand for food is elastic and children's demand for food is inelastic
D. there can be exchange of the products from adults, who could buy them at a lower price, to children


Answer: B

Economics

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The price elasticity of supply is the __________________ change in the quantity supplied of a good or service divided by the percentage change in the price.

a. quantity b. percentage c. relative d. absolute

Economics

Judging from this graph, what would the individual firm charge if it increased its output to 400 bushels of wheat?



a. $3
b. $4
c. $5
d. $6

Economics

When disposable income increases from $7 trillion to $7.5 trillion, consumption expenditure increases from $6.5 trillion to $6.9 trillion. The MPS equals

a) 0.75 b) 0.76 c) 0.8 d) 0.2

Economics

Last year, Alice bought 40 CDs when her income was $20,000 . This year, her income increased to $25,000 . and she purchased 48 CDs. We can conclude that:

a. Alice's price elasticity of demand for CDs is equal to 1. b. Alice's demand for CDs is price-inelastic. c. Alice's demand for CDs is price-elastic. d. the income elasticity of demand for CDs is negative. e. CDs are a normal good.

Economics