An increase in income will lead to an increase in demand for inferior goods.

Economists tend to judge a model based upon

A) the reality of its assumptions. B) the accuracy of its predictions. C) its simplicity. D) its complexity.

An amusement park charges an entrance fee of $75 per person plus $2.50 per ride. This is an example of

A) first-degree price discrimination. B) a two-part tariff. C) second-degree price discrimination. D) bundling. E) tying.