To think at the margin means to consider
A) how people behave in their own self-interest.
B) how a small change in one variable affects another variable.
C) how people will decide what to purchase.
D) how nothing remains constant over time.
B
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Club Med, which operates a number of vacation resorts, offers vacation packages at a lower price in the winter (i.e., the "off season") than in the summer. This practice is an example of:
A) peak-load pricing. B) intertemporal price discrimination. C) two-part tariff. D) bundling. E) Both A and B are correct.
Answer the following questions true (T) or false (F)
1. If the CPI falls from 142 to 140 between two consecutive years, this implies that prices fell by 2% between those two years. 2. The producer price index tracks the prices firms receive for goods and services at all stages of production. 3. Nominal income is equal to real income if the CPI is less than 100.