Author Question: Some grocery stores are now offering customers coupons which entitle them to a discount on certain ... (Read 65 times)

kwoodring · **on:** Jul 1, 2018

Some grocery stores are now offering customers coupons which entitle them to a discount on certain items on their next visit when they go through the check-out line. This practice is an example of:

A) intertemporal price discrimination.
B) third-degree price discrimination.
C) a two-part tariff.
D) bundling.
E) none of the above

Question 2

A risk-averse individual prefers

A) the utility of expected income of a risky gamble to the expected utility of income of the same risky gamble.
B) the expected utility of income of a risky gamble to the utility of expected income of the same risky gamble.
C) outcomes with 50-50 odds to those with more divergent probabilities, no matter what the dollar outcomes.
D) outcomes with higher probabilities assigned to more favorable outcomes, no matter what the outcomes are.
E) outcomes with highly divergent probabilities so that one of the outcomes is almost certain.