Why does a bank sometimes hold excess reserves?

Suppose Dublin Electronics charges regular customers $90 for a Blu-ray player but allows senior citizens to purchase the same item for $75. Is this likely to be a successful price discriminating strategy?

A) No, because there are many different brands of Blu-ray players and consumers will shop around. B) Yes, because senior citizens are likely to have a more elastic demand and therefore will be willing to pay a lower price compared to regular customers. C) Yes, firms price discriminate to maximize profits. D) No, price discrimination will not be effective because the store cannot prevent senior citizens from buying large quantities of Blu-ray players and reselling them for a profit.

If real GDP remains unchanged, the population size is stationary, and people have more leisure time, then per capita real GDP will _____

a. overstate actual economic growth b. understate actual economic growth c. be the most accurate measure of actual economic growth d. show that actual economic growth was negative e. show that actual economic growth was positive