Price discrimination is the
A) refusal by a firm to sell to all customers.
B) selling of a given product at more than one price when the price differences reflect cost differences.
C) pricing of a product so that not everyone can afford it.
D) selling of a given product at more than one price when the price difference is unrelated to cost differences.
D
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The demand schedules of three individuals (Tom, Dick, and Harry) are shown. If they are the only three buyers of DVDs, complete the market demand schedule for DVDs. Graphically, is the market demand for a product the horizontal or vertical sum of the
individual demand schedules?
Country X produces two goods, guns and roses, using labor and land. Assume that production of guns is relatively labor-intensive, and production of roses is relatively land-intensive. Suppose a large number of workers from a neighboring country migrate to Country X. Carefully explain all the predictions of the Rybczynski theorem about the changes in output of both guns and roses in Country X. Be certain to explain any shifts in resources from one industry to the other.
What will be an ideal response?