Which of the following can result in job rationing?

Refer to Figure 16-2. Suppose Plato Playhouse price discriminates. Which of the following statements is true?

A) By charging two different prices, the theatre company has redistributed some profits from those who can pay higher prices to those who cannot, thereby increasing economic efficiency. B) By charging two different prices, the theatre company essentially allows those willing to pay higher prices to subsidize those who are not. C) Plato Playhouse will earn higher profits if it charges a single price—an average of the two prices— instead of charging two different prices to the two different groups of customers. D) By charging two different prices, the theatre company has redistributed some profits from those who can pay higher prices to those who cannot, thereby improving equity.

Suppose that you want to build a community garden for your neighborhood, which has 500 residents. The cost of the garden is $2,000 . and each person values the garden at $3 . After a month, you have only received 75 donations at $3 each. The result is that

a. the local government should build the garden, but you should not. b. you should still build the garden, but the local government should not. c. neither you nor the local government should build the garden. d. either you or the local government should build the garden.