Suppose that utility-maximizing consumers in San Francisco pay three times as much for apples as for peaches. What is the ratio of the marginal utility of apples to the marginal utility of peaches?

During the holiday season, high-end retailers frequently place a high price on merchandise on weekends and discount the price during the week. They do this because they believe that two groups of customers exist: shoppers with little free time and bargain hunters. Bargain hunters have time to shop around and frequently shop during the week. What do economists call this price strategy used by

high-end retailers? a. oligopoly b. price discrimination c. compensating differential d. in-kind transfers

Which of the following statements about nominal interest and real interest is true?

A. Nominal interest is a yearly rate and real interest is a monthly rate. B. Nominal interest does not adjust for inflation, whereas real interest does. C. Nominal interest is what the lender receives and real interest is what the borrower pays. D. Nominal interest and real interest are two ways of saying the same thing.