A certain state legislature is considering an increase in the state gasoline tax. Representative Campbell argues that an increase in the gasoline tax would harm low-income drivers disproportionately. Representative Richards responds by saying that low-income drivers own smaller cars that use less gasoline, and that low-income drivers therefore would not be harmed disproportionately
a. Representative Campbell's argument is based primarily on efficiency, while Representative Richards' argument is based primarily on equality.
b. Representative Campbell's argument is based primarily on equality, while Representative Richards' argument is based primarily on efficiency.
c. Both representatives' arguments are based primarily on efficiency.
d. Both representatives' arguments are based primarily on equality.
d
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Sellers who charge different prices to different customers can increase their net revenue
A) by forcing some customers to pay more for the product than it is worth to them. B) by getting high-price customers in effect to subsidize sales to low-price customers. C) if the demand of some customers for the product enables the sellers to build volume by selling at prices below marginal cost. D) if they can prevent customers from reselling to one another.
When firms select the solution that is better for all parties, the ________ is satisfied
A) Nash equilibrium condition B) Pareto Criterion C) coordination game requirement D) pure strategy requirement