What is one reason car dealerships might move away from perfect price discrimination to uniform pricing?
A) Perfect price discrimination doesn't work.
B) Transaction costs erode the profit of perfect price discrimination.
C) Consumers are ill-informed and tend to complain too much.
D) Uniform pricing is always more profitable and more fair as well.
Question 2
The price elasticity of demand
A) depends on the units in which quantity is measured.
B) depends on the units in which price is measured.
C) depends on the units in which money is measured.
D) is independent of the units in which quantity and price are measured.
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Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
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