When an electronics company advertises on the local newspaper a 10% discount coupon, is this an example of price discrimination? Why or why not?
What will be an ideal response?
Yes, it is price discrimination. The price sensitive individual would search for these coupons prior to making a purchase, and will end up paying the lower price. A price insensitive individual will not search for these coupons and will not get the lower price.
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Every economic choice has an opportunity cost
a. True b. False Indicate whether the statement is true or false
Which of the following about inflation is true?
a. Anticipated inflation is an increase in the price level that comes as a surprise, at least to most individuals. b. Unanticipated inflation is a change in the price level that is widely expected. c. Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy. d. Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.