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Author Question: Price discriminators lose money by being nice to their customers. Is the previous statement correct ... (Read 51 times)

EAugust

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on: Jun 29, 2018
Price discriminators lose money by being nice to their customers. Is the previous statement correct or incorrect?
 
  What will be an ideal response?

Question 2

In what ways can expectations change your demand for a product today?
 
  What will be an ideal response?


fauacakatahaias

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is incorrectprice discrimination allows the firm to increase its economic profit.

Answer to Question 2

Expectations about both future prices and future incomes may affect your demand for a product today. For example, if you expect the price of gasoline to rise tomorrow, you will want to fill up your car's gas tank today. Also, expectations about future incomes may affect purchases today. An individual who believes that he may soon be laid off from his job (and therefore see a drop in his income) will be unlikely to purchase a new car today.


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