Bob is the only carpet installer in a small isolated town. The above figure shows the demand curves of two distinct groups of customers-residential and business. Bob is likely to price discriminate because
A) elasticities differ across markets.
B) the installation of carpets cannot be resold.
C) Bob can probably identify which consumers belong to which segment.
D) All of the above.
D
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What is the idea of fairness based on fair rules?
What will be an ideal response?
The supply of bonds rises, ceteris paribus, and the price of bonds __________. This __________ the interest rate and __________ the quantity demanded of money
A) rises; raises; lowers B) falls; lowers; raises C) rises; lowers; lowers D) falls; raises; lowers E) falls; lowers; lowers
A monopolist sets the market price for its product.
Answer the following statement true (T) or false (F)
Samuelson's theory of public expenditure demonstrates that
A. government is inefficient and will always engage in too much spending. B. an efficient mix of public goods is produced when local land/housing prices and taxes come to reflect consumer preferences. C. an optimal (or most efficient) level of output exists for every public good. D. through government regulation of private industry, the optimal level of public good provision is achieved.