Parity pricing can be used as a substitute for price floors because it
a. creates the same excess demand
b. allows farmers to earn income without producing goods
c. determines the value of farm goods using market mechanisms
d. has the same effect as a rationing scheme
e. is designed to maintain farmers' purchasing power
E
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One requirement for a firm pursuing a price-discrimination strategy is the ability to segment the market for its product. This means that
A) the firm must choose a marketing strategy that appeals to different segments of the economy. B) the firm must be able to divide the market in a way that makes arbitrage impossible. C) the firm must be willing to offer price discounts for senior citizens and children. D) the firm must set different prices for different regions where the product is sold.
In the quantity theory of money, which of these variables is endogenous?
A) the price level B) the velocity of money C) real output D) the money supply E) none of the above