Better health allows people to work harder, which raises a country's total income. This indicates that in effect, better health
A) shifts out a country's production possibilities frontier.
B) is a primary cause of price increases.
C) increases consumer surplus.
D) reduces the incentive to work.
A
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Which of the following statements about price discrimination is false?
A) Price discrimination is a method for a seller to capture some consumer surplus. B) Compared to a single-price monopoly, the number of units sold increases when a monopoly price discriminates. C) Charging less for a second pizza that is identical to the first is an example of price discrimination. D) Price discrimination increases a monopoly's profit. E) All forms of price discrimination are illegal.
Richstone Bakery reduces the price of wheat bread from $2 to $1 and finds that quantity demanded increases from 100 to 120 loaves. Richstone calculates that the price elasticity of demand for wheat bread is (approximately)
a. 0.00 b. 0.30 c. 5.00 d. 10.5 e. 2.00