In first degree price discrimination,
a. each consumer pays the same price.
b. all consumer surplus is captured by the seller.
c. the seller separates the buyers into different groups.
d. the seller charges different prices per unit for different quantities.
b. all consumer surplus is captured by the seller.
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Suppose that a new study is released stating that consumption of orange juice (a substitute for apple juice) reduces the risk of cancer, and a major freeze destroys half of the country's apple cro
A) The price of apple juice might rise or fall and the quantity of apple juice falls. B) The quantity of apple juice might rise or fall, and the price of apple juice rises. C) The price of apple juice falls and the quantity of apple juice falls. D) The price of apple juice might rise or fall and the quantity of apple juice rises.
"The fewer the number of substitutes for a product, the more elastic the demand for that product." Is the previous statement true or false?
What will be an ideal response?
The equilibrium price of credit card services is
A) the real quantity of money. B) determined only by the demand for credit card services. C) the nominal interest rate. D) equal to the average cost of credit card services.
Which of the following statements is correct?
a. Total surplus is the sum of consumer and producer surplus. b. Deadweight loss is the net loss of both consumer and producer surplus resulting from underproduction or overproduction of a product. c. Deadweight loss is a measure of market inefficiency. d. All of these.