Author Question: Bindy, an 18-year-old high school graduate, and Luciana, a 40-year-old college graduate, just ... (Read 262 times)

dakota nelson · **on:** Jul 1, 2018

Bindy, an 18-year-old high school graduate, and Luciana, a 40-year-old college graduate, just purchased identical hot new sports cars. Acme Insurance charges a higher rate to insure Bindy than Luciana. This practice is an example of:

A) collusion.
B) price discrimination.
C) two-part tariff.
D) bundling.
E) none of the above

Question 2

Rare earth metals are used to manufacture some important electronic components in popular products like cell phones. These metals are not really rare, but they are expensive to extract from the ground.

What happens to the market for the rare earth metals if these extraction costs increase? A) Demand curve shifts leftward
B) Demand curve shifts rightward
C) Supply curve shifts leftward
D) Supply curve shifts rightward