If sellers could price-discriminate and charge two different prices to two different groups of buyers in order to increase revenues, then the sellers would charge:
A. A higher price to the buyers whose demand is elastic
B. A higher price to the buyers whose demand is inelastic
C. A higher price to the buyers whose demand is unit-elastic
D. The same price actually, because price-discrimination will result in lower revenues
B. A higher price to the buyers whose demand is inelastic
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The above figure shows the demand curve for movie rentals from Redbox. At which of the following prices does Redbox have the maximum total revenue?
A) $5.00 B) $3.50 C) $2.50 D) $0.00
The legislative immigration restrictions following World War I (1914–18) contributed to which of the following in the 1920s?
(a) An acceleration in the growth in the U.S. population (b) A decline in the rate of household formation in the U.S. (c) Rapid rise in U.S. prices (d) High unemployment in the U.S.
Price elasticities are calculated for four goods, and the values are: 4.5; 3.7; 1.0; 0.2. Which price elasticity is most elastic?
A) 4.5 B) 3.7 C) 1.0 D) 0.2
Under a flexible exchange rate system, which of the following will be most likely to cause an appreciation in the exchange rate of the dollar relative to the English pound?
a. an economic boom in England, inducing English consumers to buy more American-made automobiles, trucks, and computer products b. higher real interest rates in England c. inflation in the United States while prices are stable in England d. attractive investment opportunities in England, inducing U.S. investors to buy stock in English firms