If the price of steel increases drastically, the quantity of steel demanded by the building industry will fall significantly over the long run because
Select one:
a. buyers of steel are less sensitive to a price change if they have more time to adjust to the price change.
b. buyers of steel are ...
ECON 528 Mid-term fourth 15 || CORRECTLY SOLVED
If the price of steel increases drastically, the quantity of steel demanded by the building
industry will fall significantly over the long run because
Select one:
a. buyers of steel are less sensitive to a price change if they have more time to adjust to the
price change.
b. buyers of steel are more sensitive to a price change if they have more time to adjust to the
price change.
c. sales revenue in the building industry will fall sharply.
d. profits will fall by a greater amount in the long run correct answers b
Some electric utilities offer one rate to commercial users and a different rate to residential
users. This is an example of:
Select one:
a. third degree price discrimination
b. universal access pricing
c. peak load pricing
d. bundling correct answers a
First (Perfect) degree price discrimination means that a firm charge:
Select one:
a. Different prices to people of different racial or ethnic backgrounds.
b. One single price—the maximum possible—to all of its buyers.
c. Different prices to different groups of buyers.
d. The maximum amount that buyers are willing to pay for each unit. correct answers d
If a firm charges customers $ 200 per unit of the first unit purchased, and $160 per unit for
each additional unit purchased in excess of one unit. Then, what is the economic term of this
strategy?
Select one:
a. Third -degree price discrimination
b. Profit maximization pricing
c. First-degree price discrimination
d. Second-degree price discrimination correct answers d
If an increase in income leads to a decrease in the demand for popcorn, then popcorn is
Select one:
a. a neutral good.
b. an inferior good.
c. a normal good.
d. a necessity. correct answers b
Tomas increased his consumption of potato chips when the price of pistachios increased. For
Tomas, potato chips and pistachios are
Select one:
a. complements in consumption.
b. both inferior goods.
c. both luxury goods.
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