Why do price discriminating firms often offer lower prices to children and the elderly?
A. They have a lower willingness to pay than other consumers.
B. Their demand for goods and services tends to be less elastic than other consumers.
C. These firms are more interested in equity than profit maximizing.
D. Such a strategy lowers the costs of the firm.
Answer: A
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Explain the relationship between the incidence of a tax and elasticity
What will be an ideal response?
A policy is time consistent when:
A. the timing of a policy is irrelevant. B. policymakers have incentives to make policy decisions in a time-sensitive fashion. C. policymakers consider the future when making current policies. D. policymakers have incentives to adhere to a policy decision made today, in the future.
Which determinant MIGHT increase supply in the market?
A) an increase in the price of complementary goods B) an increase in the number of sellers of a product C) an increase in the number of consumers in the market D) an increase in the price of inputs to make the product
Refer to the diagram. Land:
A. will cease to be used in production if demand falls below D 4 .
B. would be a free resource if demand is D 4 or less.
C. would be an economic (scarce) resource in the case of all four demand curves.
D. would be a free resource in the case of all four demand curves.