Products that have inelastic demand have many substitutes

The conditions in which vertical relationships can enhance a firm's ability to price discriminate include

a. the manufacturer's product is of value to just one type of customer b. the costs of arbitraging the price differences across markets is large c. the manufacturer acquires the distributer in the lower priced market d. competition provide little ability for the manufacturer has to price above marginal cost

If nonmarket work is a normal good, then an increase in income __________ the time allocated to __________

a. decreases; market work b. decreases; leisure c. increases; market work d. increases; leisure e. increases; nonmarket work