A seller is willing to sell 5 units of a good at a minimum price of $1 per unit. The reservation value of the seller in this case is:
A) $1.
B) $5.
C) $6.
D) $10.
A
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Because prices are slow to move in the short-run, when the Federal Reserve lowers the federal funds rate
A) nominal interest rates rise. B) real interest rates fall. C) inflation falls. D) real interest rates rise.
The Utah Pie case is an example of a violation of the Robinson-Patman Act
a. True b. False Indicate whether the statement is true or false
A fear that consumption of ice cream may be related to a life threatening disease spreads rapidly through France. The market result will be:
a. the demand falls, price decreases and therefore French consumers buy more ice cream. b. the demand falls, price decreases and the quantity supplied therefore falls. c. a fall in demand followed by a fall in supply. d. the equilibrium quantity falls, but the price does not change.
If all consumers are uninformed about the quality of a product
A) firms can increase product by selling the same product under a different name at a different price. B) firms will not be able to price discriminate. C) firms will price discriminate. D) firms will increase profits by charging different prices for the same product.