For what type of good do the substitution and income effects work in opposite directions?

The long-run Phillips curve shows the relationship between the inflation rate and the unemployment rate when the economy is

A) in expansion. B) at full inflation. C) away from potential GDP. D) in recession. E) at full employment.

Which of the following is not a requirement for price discrimination?

a. The firm must be able to identify consumers who are willing to pay more for the product. b. The firm must be able to prevent resale of the product. c. There must be a downward-sloping demand curve for the product. d. The firm must face different costs for the goods sold to different consumers.