Price discrimination is related to elasticity because:
A. the firm can increase revenues by charging customers with elastic demands higher prices and charging customers with inelastic demands lower prices.
B. the firm can increase revenues by charging customers with elastic demands lower prices and charging customers with inelastic demands higher prices.
C. the firm can increase revenues by charging all customers higher prices.
D. None of these; elasticity and price discrimination are unrelated.
Answer: B
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When the Fed raises the required reserve ratio, then the:
a. ability of banks to make loans is restricted. b. ability of banks to make loans is enhanced. c. ability of banks to make loans is unaffected. d. interest rate that banks pay to the Fed to borrow money is increased. e. interest rate that banks pay to other banks to borrow money is increased.
Suppose you buy a new Tesla Model S. The battery that comes with the car is a(n)
A. intermediate good. B. financial good. C. final good. D. transfer good.
To raise the most tax revenue, governments should tax which of the following goods?
A. SUVs B. gasoline C. designer shoes D. sofas
Refer to the information provided in Figure 4.1 below to answer the question(s) that follow.
Figure 4.1Refer to Figure 4.1. The United States will import 6 million apples per day if a per-apple tax of ________ is levied on imported apples.
A. 0 cents B. 10 cents C. 20 cents D. 30 cents