This topic contains a solution. Click here to go to the answer

Author Question: If the equilibrium price for a two-liter bottle of Coca-Cola is 1.50 today, just like it was ten ... (Read 137 times)

mrsjacobs44

  • Hero Member
  • *****
  • Posts: 500
If the equilibrium price for a two-liter bottle of Coca-Cola is 1.50 today, just like it was ten years ago, can we safely say that all supply and demand conditions in the market for Coke have remained very stable all these years?
 
  What will be an ideal response?

Question 2

Joe, a hair dresser, offers students a discount price on haircuts. This form of pricing is an example of
 
  A) a marginal cost pricing rule.
  B) an average cost pricing rule.
  C) price discrimination.
  D) perfect price discrimination.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

yasmin

  • Sr. Member
  • ****
  • Posts: 319
Answer to Question 1

Not necessarily. The demand curve might have shifted rightward continuously due to population growth in the United States and growing demand for Coke in other countries world-wide. Although that alone would have driven up the price, there could have been other factors shifting the supply curve rightward, such as improved technology for producing and transporting Coke, or declining sugar prices because of some great sugar harvests. Regardless of the reason, if the supply increased, so that the supply curve shifted rightward, then the increase in supply, which leads to a fall in the equilibrium price, can offset any increase in the demand. So, even if the price has remained constant, the only accurate statement is that any change in demand was accompanied by an equal sized change in the supply in the same direction.

Answer to Question 2

C




mrsjacobs44

  • Member
  • Posts: 500
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


diana chang

  • Member
  • Posts: 288
Reply 3 on: Yesterday
Gracias!

 

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

For a complete list of videos, visit our video library