A firm practicing direct price discrimination will charge a higher price to
a. Consumers known to have an elastic demand
b. All consumers
c. Consumers known to have an inelastic demand
d. Consumers known to have a unitary elastic demand
c
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Why do national income accountants include indirect business taxes in the income approach to GDP computation?
A. Indirect business taxes are the allowances for the portion of capital worn out by producing GDP. B. Indirect business taxes are part of firms' profits. C. Indirect taxes are income payments to suppliers of resources. D. Indirect business taxes are income for the government received through collection by firms.
If the supply curve is a vertical line, it means that:
A. regardless of price, the quantity supplied is a constant amount. B. regardless of quantity, the price is a constant amount. C. the good is inferior. D. the good has many substitutes.