A school bookstore tried to engage in price discrimination by selling novels to students and faculty for different prices. Its strategy was to increase prices to faculty and decrease prices to students. What is the most likely reason that this strategy failed?
A. Novels are sold in a competitive market.
B. There was nothing to prevent students from purchasing novels and reselling them to faculty.
C. Everyone had inelastic demand for novels.
D. There was no easy way to distinguish the students from the faculty.
Answer: B
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A country will likely experience an increase in poverty if
A) its population decreases over time. B) its real GDP per person growth rate increases over time. C) it does not receive foreign aid. D) its inflation rate decreases or slows over time. E) its real GDP growth rate decreases or slows over time.
The evidence on mergers occurring within the hospital industry suggests that
A) efficiency gains that resulted have been passed on to customers through lower prices. B) the mergers have tended to not have any significant effect on hospital prices. C) prices have risen slightly as some efficiency gains are passed on to customers after mergers. D) prices have risen after mergers.
Marquis borrowed $1,000 from Ayana for a year and agreed to repay her $1,050 at the end of the year. If the inflation rate was 3 percent, what is the real rate of interest Ayana received?
a. 10 percent b. 5 percent c. 3 percent d. 2 percent e. -2 percent
Which of the following is not an example of a capital input?
a. A person's skills and abilities, which can be employed to produce valuable goods and services. b. Tools and equipment. c. Factories and offices where goods and services are produced. d. Computers used by a company to record inventory, sales, and payroll.