Price discrimination:
A. can benefit consumers with a lower willingness to pay when compared to other consumers in the market
B. can be a successful strategy for any firm in a competitive market
C. tends to decrease the profits of the firm.
D. is more successful if resale of the product is possible from one consumer to another.
A. can benefit consumers with a lower willingness to pay when compared to other consumers in the market
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Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Assume that the price of tote bags is $15. At this price
A) there is a shortage equal to 55 tote bags; the price of tote bags will rise until demand is equal to supply. B) the demand exceeds the supply of tote bags by 55. Some consumers will have an incentive to offer to buy tote bags at a higher price. C) the quantity demanded exceeds the quantity supplied by 75. The price will eventually rise to $25 where quantity demanded will equal quantity supplied. D) there is a shortage, equal to 55 tote bags, that will be eliminated when the price rises to $25.
Everything else held constant, if a central bank makes an unsterilized purchase of foreign assets, then the domestic money supply will ________ and the domestic currency will ________
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
Which of the following is most likely to increase U.S. exports?
a. The government gives subsidies to U.S. firms that export goods or services. b. The government reduces the size of the budget surplus. c. The United States unilaterally reduces its restrictions on foreign imports. d. Taxes on domestic saving rise.
According to the monetarist view and the equation of exchange, which of the following will occur because the Fed sells securities in the open market?
A. A decrease in real interest rates. B. An increase in the price level. C. A lower level of real output. D. A decrease in nominal aggregate spending.