If you purchased a new model of a digital camera right after it is released you will likely pay more than if you purchase it six months after release. Why is this an example of price discrimination on the part of the firm?
What will be an ideal response?
"Early adopters" who purchase the camera right away do so because they have immediate need (thus an inelastic demand) for the camera due to its new features. Other consumers might be willing to purchase the camera but only at a lower price. If price starts out high the consumers with immediate need will purchase the camera because they are unable to wait for price to drop. Once they make their purchases, the firm can drop the price so that other consumers with relatively elastic demands will also purchase cameras.
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The farmer pays 20 cents for the seed that is sold to the miller for 35 cents;
A) $1 B) $2 C) $3 D) 35
When only one buyer has access to a particular labor market,
A. There is no seller concentration. B. A monopoly exists. C. A monopsony exists. D. There is no buyer concentration.
Union membership fell in the
A. 1940s. B. 1950s. C. 1960s. D. 1980s.
If Niki is willing to pay up to $5 for an ice-cream bar but she actually pays $2 for it. The consumer surplus of the ice-cream bar for Niki
A) is $2. B) is $3. C) is $7. D) cannot be determined without information about the market structure.