Which of the following is not a necessary characteristic of a successful price discriminator?
a. It has market power.
b. It can prevent the resale of the product
c. Its marginal costs of production differ across customers.
d. Willingness to pay for its product differs across customers.
c
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A rent ceiling results in a shortage. As a result, which of the following do you expect?
A) The shortage will persist as long as the ceiling is in effect. B) Discrimination as landlords choose their tenants, possibly based on race, age, or gender. C) A black market for apartments whereby higher rents are obtained through various other charges. D) All of the above would be expected.
Demand price elasticity is measured by the:
a. percentage change in income / percentage change in price. b. percentage change in quantity demanded / percentage change in income. c. percentage change in price / percentage change in quantity demanded. d. percentage change in quantity demanded / percent change in price. e. percentage change in total revenue / percentage change in price.