Third-degree price discrimination involves
A) charging each consumer the same two part tariff.
B) charging lower prices the greater the quantity purchased.
C) the use of increasing block rate pricing.
D) charging different prices to different groups based upon differences in elasticity of demand.
D
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Aggregate demand will be affected by the purchasing power of money
Indicate whether the statement is true or false
Many people consider hot dogs to be an inferior good. For such people, all else held constant, a decrease in income would cause their demand for hot dogs to:
A) increase. B) stay the same. C) decrease. D) cannot be determined with the information given.
When government corrects a market with an externality present by allowing participants to buy up to the point where their net benefit is zero, they must be:
A. imposing a tariff. B. offering a Coase tax. C. mandating a quota. D. imposing a tax.
Health care improvements often don't happen because:
A. they are too expensive to implement. B. doctors overprescribe and drive the cost of health care too high. C. health care facilities don't exist in some parts of the world. D. they are too expensive to have any significant impact.