Author Question: One of the necessary conditions for price discrimination to occur is that: a. buyers in different ... (Read 86 times)

mcmcdaniel · **on:** Jun 30, 2018

One of the necessary conditions for price discrimination to occur is that:
a. buyers in different markets have different elasticities of demand.
b. the demand curve is upward sloping.
c. buyers must be allowed to resell the good at a higher price elsewhere.
d. all of these are necessary for price discrimination to occur.

Question 2

According to the substitution effect, a decrease in the price of a product leads to an increase in the quantity demanded because buyers:
a. purchase more complementary goods.
b. purchase more substitute goods.
c. purchase fewer substitute goods.
d. have more real income.