For a normal good, an increase in consumer income will lead to
I. a movement down the demand curve
II. a rightward shift in the demand curve
III. a reduction in supply

How does a firm in monopolistic competition determine its price and quantity? What type of profit can it make in the short run and the long run?

What will be an ideal response?

The practice of charging different prices to various groups of customers that are not based on differences in the costs of production is referred to as:

A) predatory pricing. B) markup pricing. C) discretionary pricing. D) price discrimination.