Bob is the only carpet installer in a small isolated town. The above figure shows the demand curves of two distinct groups of customers-residential and business. Bob is likely to price discriminate because
A) elasticities differ across markets.
B) the installation of carpets cannot be resold.
C) Bob can probably identify which consumers belong to which segment.
D) All of the above.
D
Economics
You might also like to view...
Given a real interest rate, a decrease in taxes on saving ________ the after-tax real interest rate and ________ the incentive to save
A) increases; increases B) increases; reduces C) decreases; increases D) decreases; reduces
Economics
To have an effect on the market price, price ceilings must be set above the equilibrium price. ?
Answer the following statement true (T) or false (F)
Economics