« previous next »

Author Question: The strategy underlying price discrimination is to: a. charge higher prices to customers who have ... (Read 35 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?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Mosaic of Charge-Coupled Devices (CCDs) Mosaic of Charge-Coupled Devices (CCDs)
Alan Price - Poor People Alan Price - Poor People
Community colleges have opened higher education to millions of students who would not otherwise have ... Community colleges have opened higher education to millions of students who would not otherwise have ...
Processes of Lightning Formation: Charge Separation Processes of Lightning Formation: Charge Separation
Higher-Level Thinking Skills Used in Massage Therapy Higher-Level Thinking Skills Used in Massage Therapy
1) (a) What is Coulomb?s Law? (b) Find the net electrostatic force on the charge labeled ?P? in ... 1) (a) What is Coulomb?s Law? (b) Find the net electrostatic force on the charge labeled ?P? in ...
Video: Power Supply Polyacrylamide Gel Protein Sample

For a complete list of videos, visit our video library