A national chain of bookstores has initiated a frequent buyer program. If you buy a frequent buyer card for $10, you are entitled to a 10 percent discount on all purchases for 1 year. This practice is an example of:
A) peak-load pricing.
B) intertemporal price discrimination.
C) two-part tariff.
D) bundling.
E) Both A and B are correct.
C
Economics
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The change in potential real GDP and aggregate supply shown in the graph above can be a result of
A) a fall in the price level. B) a decrease in the money wage rate. C) an increase in the real wage rate. D) an increase in the quantity of capital. E) a decrease in the money price of oil.
Economics
If a production process generates pollution, then a competitive market will
A) produce more of the good than is socially optimal. B) produce less of the good than is socially optimal. C) produce the socially optimal quantity of that good. D) produce zero output.
Economics