You produce stereo components for sale in two markets, foreign and domestic, and the two groups of consumers cannot trade with one another. You will charge the higher price in the market with the
A) lower own price elasticity of demand (more inelastic demand).
B) higher own price elasticity of demand (more elastic demand).
C) larger teenage population.
D) greater consumer incomes.
A
Economics
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If a 5 percent increase in income brings about a 10 percent decrease in the demand for a good, then the
A) good is a normal good. B) good is an inferior good. C) income elasticity of demand is 0.5. D) income elasticity of demand is 2.0. E) income elasticity of demand is 5.0.
Economics
To justify restricting trade, the U.S. broom industry has more reason to use this argument than does the Mexican broom industry
a. retaliation b. cheap foreign labor c. national security d. infant industries e. diversification
Economics