Parity pricing and target pricing differ in that
a. consumers pay a higher than equilibrium price under parity pricing and a lower than equilibrium price under target pricing
b. consumers pay a higher than equilibrium price under target pricing and a lower than equilibrium price under parity pricing
c. parity pricing generates an excess supply of farm goods while target pricing generates an excess demand
d. parity pricing generates an excess demand for farm goods while target pricing generates an excess supply
e. under parity pricing, consumer demand determines price while under target pricing, market supply determines the price
A
You might also like to view...
The production of an industrial good in a plant emits harmful gases that cause breathing difficulty. Which of the following will happen if the government imposes a Pigouvian tax on the plant?
A) Marginal external cost will increase. B) Marginal private cost will fall. C) The quantity supplied of the good will decrease. D) The demand for the good will increase.
Which of the following are complementary goods?
A) sport utility vehicles and gasoline B) butter and margarine C) beer and wine D) DVDs and videocassettes
To find the market demand curve for a product, we sum the individual demand curves a. vertically
b. diagonally. c. horizontally. d. perpendicularly.
Explain how the law of comparative advantage benefits developing countries.
What will be an ideal response?