Explain what is meant by perfect price discrimination
What will be an ideal response?
This occurs when a firm charges the maximum amount that buyers are willing to pay for each unit.
Economics
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A cut in taxes, combined with an increase in government purchases, would: a. increase AD
b. decrease AD. c. leave AD unchanged. d. have an indeterminate effect on AD.
Economics
Which of the following is not correct?
a. The inflation rate is measured as the percentage change in a price index. b. For the last 40 or so years, U.S. inflation hasn't shown much variation from its average rate of about 2 percent. c. During the 19th century there were long periods of falling prices in the U.S. d. Some economists argue that the costs of moderate inflation are not nearly as large as the general public believes.
Economics