Why is a discounted airline fare a price discrimination that can be offered?
(A) Because people who fly on business want the price discounts but do not qualify.
(B) Because senior citizens qualify for discounts on certain types of flights but not on others.
(C) Because people do not necessarily want to go where the discounts will allow them to go.
(D) Because vacationers are willing to put up with the restrictions that the airlines impose.
Answer: (D) Because vacationers are willing to put up with the restrictions that the airlines impose.
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You are thinking about buying a house. You find one you like that costs $200,000 . You learn that your bank will give you a mortgage for $160,000 and that you would have to use all of your savings to make the down payment of $40,000
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In a bilateral monopoly, equilibrium price will
A) favor the seller. B) favor the buyer. C) approximate the competitive equilibrium price. D) not be determined by a simple rule.