If Mort's House of Flowers sells one dozen roses to different customers at different prices, economists would consider this an example of
A) rational ignorance. B) price discrimination.
C) price gouging. D) arbitrage.
Question 2
If Molly Bee increases her work hours when her wage increases, then
A) the substitution effect of the wage increase outweighs the income effect.
B) the income effect of the wage increase outweighs the substitution effect.
C) leisure is an inferior good to Molly.
D) Molly is spending beyond her means.