In practice, price discrimination is never perfect. Why?
What will be an ideal response?
There are two reasons as to why price discrimination is never perfect in practice. They are as follows:
a) It is very difficult to charge a unique price to each and every consumer.
b) It is impossible to know every consumer's willingness to pay for a product.
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Which of the following best describes the effect on the aggregate supply curve if political negotiations result in a substantial decrease in the price of oil?
A) There is no change to the AS curve. B) The AS curve does not shift but there is a downward movement along it. C) The AS curve shifts leftward. D) The AS curve does not shift but there is an upward movement along it. E) The AS curve shifts rightward.
Keeping $20 in currency to be able to buy gasoline, money is performing which function?
A) medium of exchange B) unit of account C) store of value D) barter mechanism E) symbol of fiat