« previous next »

Author Question: The strategy underlying price discrimination is to: a. charge higher prices to customers who have ... (Read 62 times)

Hungry!

  • Hero Member
  • *****
  • Posts: 1,071
on: Jun 30, 2018
The strategy underlying price discrimination is to:
 a. charge higher prices to customers who have better access to substitutes.
  b. charge everyone the same price but limit the quantity they are allowed to buy.
  c. increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand.
  d. reduce per-unit costs by charging higher prices to those with the most elastic demand and lower prices to those with the most inelastic demand.

Question 2

When the price of a good falls, consumers may increase the quantity consumed because they have greater total purchasing power. This statement describes the:
 a. substitution effect.
  b. income effect.
  c. consumer equilibrium effect.
  d. price effect.


Mochi

  • Sr. Member
  • ****
  • Posts: 300
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

b


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Gasoline prices Gasoline prices
Prices for Cotton and for Slaves, 1802–1860 Prices for Cotton and for Slaves, 1802–1860
Higher centers influencing autonomic function. Higher centers influencing autonomic function.
Strategy: Algorithms and Heuristics Strategy: Algorithms and Heuristics
The net price of an article is $79.84. What is the list price if a discount of 23% was allowed? The net price of an article is $79.84. What is the list price if a discount of 23% was allowed?
The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ... The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ...
Video: Mechanisms for chromosome movement Animation

For a complete list of videos, visit our video library