Tying is a form of price discrimination in which one good called the ____ is tied to a second good called the ____.
Fill in the blank(s) with the appropriate word(s).
Answer: base good; variable good
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In 2012, all of fast-food chains expanded their hours of operation, with nearly 40% of all McDonald's restaurants being open 24 hours per day. This strategy was aimed at increasing sales because:
A) it was estimated that nearly one-fifth of all employed Americans worked primarily in the evening contributing to the demand for fast-food in late hours. B) it was estimated that consumers who shop at night tend to be more price sensitive. C) it was believed that longer hours of operation would lead to greater brand loyalty. D) none of the above.
If rational expectations hold, aggregate demand policy actions only affect output if
a. they are predictable. b. they are unpredictable. c. they are systematic. d. they are permanent. e. both b and d.
The price elasticity of demand is generally:
A. negative, but the minus sign is ignored. B. positive, but the plus sign is ignored. C. positive for normal goods and negative for inferior goods. D. positive because price and quantity demanded are inversely related.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, an increase in unemployment may be represented by the movement from
A. B to A. B. A to C. C. C to D. D. B to D.