The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to just one type of customer
b. the costs of arbitraging the price differences across markets is large
c. the manufacturer acquires the distributer in the higher priced market
d. lack of competition provide the manufacturer with the ability to price above marginal cost
d
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A lower interest elasticity of investment demand leads to a
a. steeper IS curve. b. flatter IS curve. c. steeper LM curve. d. flatter LM curve.
The law of demand states that, other things equal:
A. price and quantity demanded are inversely related. B. the larger the number of buyers in a market, the lower will be product price. C. price and quantity demanded are directly related. D. consumers will buy more of a product at high prices than at low prices.