Other things being equal, a price-discriminating firm will charge less to the customers who
A) have the lowest incomes.
B) have the least elastic demand for its product.
C) have the most elastic demand for the product.
D) are the most rational in making their decisions.
Answer: C
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In the market depicted in the above figure, if a single-price monopoly maximizes its profit, which area shows the deadweight loss?
A) area FHIL B) area GHJM C) area IJH D) area LJK
Hyperinflation occurs when
A) the inflation rate rises. B) the inflation rate declines. C) the inflation rate is extremely high. D) the inflation rate is extremely low.
Invisible hand principle
What will be an ideal response?
When there are sustained increases in real GDP over time, we say that the economy is undergoing:
A. economic stagnation. B. a recession. C. economic growth. D. massive changes in productive capacity.