On average, if demand is unknown and costs of underpricing are _______ than the costs of overpricing, then err on the side of_________

The income elasticity of demand for haircuts is 1.5, and the income elas-ticity of demand for food is 0.14 . You take a weekend job, and the income you have to spend on food and haircuts doubles

If the prices of food and haircuts remain the same, will you double your expenditure on haircuts and double your expenditure on food? Explain why or why not.

Vertical contracts between manufacturers and retailers often aim to

a. Prevent the manufacturers from upstream price discrimination b. Reward the manufacturer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the manufacturer's belief of the likely success of his product d. All of the above