Consider a market characterized by the following inverse demand and supply functions: PX = 40 - 4QX and PX = 10 + 2QX. Compute the surplus received by consumers and producers.

Across the globe, exchange rate regimes are:

a. mostly fixed. b. a mix of fixed and floating. c. mostly floating. d. hard to pinpoint.

Which of the following reasons explains how second-degree price discrimination works?

A. In order to get people to buy more of a good you typically have to lower the price because of the law of demand. B. The price of the good or service is what the consumers are willing and able to pay, which increases profits. C. People will buy more of a good when they have relatively inelastic demands for the good. D. Producers have increasing average total costs as they produce more of a good.