In determining the poverty level, the Census Bureau counts cash transfers, but not in-kind transfers, thereby understating the actual amount of antipoverty transfers made

Assume an automobile manufacturer can sell its sport utility vehicle (SUV) with or without a trailer towing package. One group of customers, group A, is willing to pay a maximum of $30,000 for the SUV and $1,100 for the towing package

A second group, B, is willing to pay $29,000 for the SUV and $1,000 for the towing package. Assuming the manufacturer cannot price discriminate, to maximize its revenues the manufacturer should: A) sell the components separately, charging $30,000 for the SUV and $1,000 for the towing package. B) sell the components separately, charging $29,000 for the SUV and $1,100 for the towing package. C) sell the components separately, charging $29,000 for the SUV and $1,000 for the towing package. D) sell the components as a bundle for $30,500.

Lipitor, a heart medication with few substitutes, should have an own-price elasticity of demand that is:

a. Relative elastic b. Relatively inelastic c. Perfectly inelastic d. Perfectly elastic