Author Question: For direct price discrimination to work effectively a. The low-valued group should not be able to ... (Read 39 times)

serike · **on:** Jul 1, 2018

For direct price discrimination to work effectively
a. The low-valued group should not be able to arbitrage
b. Charge the same price to the different groups
c. Both groups should have the same elasticity of demand
d. None of the above

Question 2

The management of a rental building faces a rent control situation, where it cannot charge more than 400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be 1000 per month for them. The management decides to offer controlled rent but force the tenants to rent furniture from them. This is an example of
a. Tying
b. Bundling
c. Exclusion
d. Fraud