If a college student's demand for newspaper subscriptions is more price-elastic than a business executive's demand for newspaper subscriptions, which of the following pricing strategies would a price-discriminating newspaper publisher follow?
A. Set price according to the marginal cost of printing the newspaper
B. Charge a higher price to college students
C. Charge a higher price to business executives
D. Charge the same rate to college students and business executives
Answer: C
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The tax multiplier equals 1 ? spending multiplier
a. True b. False Indicate whether the statement is true or false
There are two kinds of changes in net taxes: First, net taxes can change if the government changes its tax or transfer policies. Second, net taxes change automatically as income rises and falls, without any change in policy. The _________ kind of change sets off the multiplier process, while the _________ kind of change occurs during the multiplier process
a. first; first. b. first; second. c. second; first. d. second; second. e. None of the above.
In the short run, a firm operating in a monopolistically competitive market can earn
a. positive economic profits. b. economic losses. c. zero economic profits. d. All of the above are possible.
Refer to the information provided in Figure 6.3 below to answer the question(s) that follow.
Figure 6.3Refer to Figure 6.3. Molly's budget constraint is AC. Molly can purchase
A. all of the points along BD. B. none of the points along AD. C. all of the points along AB. D. none of the points along AC.