A group price discriminator sells its product in Florida for three times the price it sets in New York. Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is -2
0, the demand in Florida A) has an elasticity of -6.0.
B) is more price elastic than the demand in New York.
C) has an elasticity of -1.2.
D) has an elasticity of -0.67.
C
Economics
You might also like to view...
What is the shape of a firm's marginal revenue product curve? Why does it look this way?
What will be an ideal response?
Economics
If the U.S. dollar depreciates in the foreign exchange market, American exports will be __________ and American imports will be __________
a. more expensive; more expensive b. cheaper; cheaper c. less expensive; less expensive d. less expensive; more expensive e. there will be no change
Economics