« previous next »

Author Question: The strategy underlying price discrimination is to: a. charge higher prices to customers who have ... (Read 24 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?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi
Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r
Charge development is unfavorable and can be circumvented by donation of a proton Charge development is unfavorable and can be circumvented by donation of a proton
Primatologist Volker Sommer and his colleagues showed that langur infanticide had adaptive value and Primatologist Volker Sommer and his colleagues showed that langur infanticide had adaptive value and
Maps are important tools in political science as they help us see relationships between politics and Maps are important tools in political science as they help us see relationships between politics and
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Primate Evolutionary Tree Animation

For a complete list of videos, visit our video library