Firms are able to price discriminate
A) when all customers are uninformed about quality differences.
B) when no customers are uninformed about quality differences.
C) when some customers are uninformed about quality differences.
D) when there is full information about quality available to all customers.
C
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Which of the following is necessary for the invisible hand of market prices to work properly?
a. buyers and sellers who generally tend to disregard their own self-interest b. democratic political procedures and highly regulated markets c. price controls that restrict the movement of market prices d. competition and property rights that are well-defined and enforced
Other things the same, an increase in velocity means that
a. transactions per dollar increase so the price level rises. b. transactions per dollar increase so the price level falls. c. transactions per dollar decrease so the price level rises. d. transactions per dollar decrease so the price level falls.