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Explain how the following cases involve price discrimination, and how the seller attempts to prevent arbitraging the two prices:
1. A cement firm requires in a sale that it delivers the cement to the buyer, and wants to know the buyer's location.
2. An airline requiring that the passenger spend a Saturday night in the destination (i.e., away from home) for any discounted ticket price.
3. Peak-load pricing, which occurs when the price changes over time (e.g., during the day) to be higher at peak demand periods and lower at low demand periods (think of a bridge toll, where the toll is highest at rush hour but lowest at off-peak times such as in the evening).
Do anticipated changes in m (that is, changes that are expected as of when rigid-price firms set their prices) affect y and Find the first-order condition for the period-2 policymaker's choice of G2 given D.
Suppose two parties agree that the expected inflation rate for the next year is 3%. Based on this, they enter into a loan agreement where the nominal interest rate to be charged is 7%. If inflation for the year turns out to be 2%, who gains and who l..
What is Michael's accounting profit or loss? What is Michael's economic profit or loss? Did he make a good decision starting his own business?
A sharp decrease in housing prices makes people much less wealthy. If the primary effect of this decreased wealth is felt on labor supply, what happens to the level of employment and the real wage rate if the labor supply function is positively relat..
assume there are two types of consumers type a consumers have a demand q 10 ? p for widgets and consumers of type b
If the multiplier is 15 and the government increased government spending by $30 billion, holding all other factors constant, how much would real GDP increase?
Can you select one positive and one negative example of events in your area, state, country or the world that might impact our life, careers or professions.
Illustrate what are some of the comparative advantages for the companies to operate in the host country.
Summarize the views of economists Richard Gill on what the Fed's actions during the Great Depression. What led to the Accord of 1951? What did the Accord do? Explain the Fed's action to try to correct the 2008 Recession.
Prepare a 1300 words report on Dodd Frank Wall Street Reform and Consumer Protection Act make a review and opinion of its impact on Macro Economy.
Make a separate diagram to show the answer, and describe what happens to equilibrium price and sales, explaining why or why not this makes sense in the real world
Which of these is most likely favored by both management and labor? An increase in wages or Cutbacks in health coverage due to rising health care costs
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