To practice price discrimination, a firm:
a. must face a relatively elastic demand curve.
b. must have customers with different elasticities of demand.
c. must not be able to distinguish between customers based on elasticities of demand.
d. must not be able to prevent resale of the product.
e. must be a price taker.
b
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If the MPC is 0.8, what change in investment spending is required to effect a total change in income by $60 billion?
A. $12 billion B. $15 billion C. $20 billion D. $25 billion
Exhibit 4-6 Demand and supply curves
If the market supply increases and, simultaneously, market demand decreases, the new equilibrium will show:
A. market price will decrease, and market quantity exchanged could increase, decrease, or remain unchanged. B. market price will increase, and market quantity exchanged will decrease. C. market price will increase, and the quantity exchanged could increase, decrease, or remain the same. D. market price could increase, decrease, or remain the same, and quantity exchanged will increase.