A GDP price chain price index number of 120.0 for a given year indicates that prices in that year are 20 percent higher than prices in the base year

Comment on the following statement: "I decided to buy a car from a dealer in a town 100 miles away because he was offering a price that was $100 lower than the dealer in my hometown. Therefore, I saved $100."

What will be an ideal response?

The Ford Taurus and Ford Escort product lines (both produced by Ford) use many of the same parts in their cars, and the cars are, apart from design, virtually identical to one another, except for price. This suggests

a. a balanced oligopoly b. cartel pricing c. Ford's production inefficiency d. game theory pricing e. price discrimination