Which of the following reasons explains how second-degree price discrimination works?
A. In order to get people to buy more of a good you typically have to lower the price because of the law of demand.
B. The price of the good or service is what the consumers are willing and able to pay, which increases profits.
C. People will buy more of a good when they have relatively inelastic demands for the good.
D. Producers have increasing average total costs as they produce more of a good.
Answer: A
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Signaling is
a. actions by the informed party to reveal her true risks b. actions by the informed party to conceal her true risks c. actions by the uninformed party to uncover the true risks d. actions by the uninformed party to conceal the true risks
Refer to the figure below. Player A can infer that Player B will: 
A. Player A cannot infer anything about what Player B will do given this matrix. B. choose Right. C. choose Left when A chooses Up and choose Right when A chooses Down. D. choose Left.