Explain the relationship between the price elasticity of demand and price discrimination. Give two examples
What will be an ideal response?
Price discrimination is often used when there are different elasticizes of demand among buyers of a product. For example, phone rates during a business day are higher than phone rates at night and on weekends because demand is relatively more inelastic during the day and relatively more elastic during the evenings and on weekends. As another example, movie theaters charge higher prices during the evening when the demand is relatively inelastic and charge lower prices during the day when demand is relatively more elastic.
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The price of X is $20 and the price of Y is $40.
Based on the above graph, if income is $800, how many units of Y will the consumer choose?
A. 6 B. 7 C. 8 D. 9 E. 10
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In Exhibit 3-11, in Panel B the movement from point A to point C describes a(n):
A. increase in both demand and supply, where the increase in supply is relatively bigger. B. decrease in both demand and supply, where the decrease in supply is relatively bigger. C. increase in demand and a decrease in supply, where the decrease in supply is relatively bigger. D. decrease in demand and increase in supply, where the increase in supply is relatively bigger.
An increase in the price of steel to car manufacturers will cause
A. the demand for cars to decrease. B. the supply curve for cars to shift left. C. the quantity supplied of cars to increase. D. the quantity demanded for cars to increase.
Structural unemployment is the result of
A) technological change or foreign competition. B) normal labor market turnover. C) a slowdown in the rate of economic expansion. D) irresponsible workers with poor work habits. E) changing weather patterns through the year.