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For each of the examples below, explain if they correspond to one or none of the three models of price discrimination discussed in class. An explanation is required.
1. Uber increases the price of a ride during rush hour.
2. The local supermarket sells a box of blueberries for $4 and a pack of 3 boxes for $12.
3. The department store, Hudson's Bay, sends discount coupons in the mail to its loyal customers.
4. The internet provider offers a 50 GB plan for $80 and a 120 GB plan for $170.
Essential Problems in bold: Demand with a quasi-linear utility function. Consider a consumer with the following utility function u(x1, x2) = √x1 + x2. This is an example of a Quasi-Linear utility function. We can see that it is linear in good 2 but n..
Discuss in detail any two supply-side policies and how they are supposed to work, and describe more generally the supposed benefits and disadvantages of supply-side policies as opposed to expansionary demand management policy options
Situation 1: Throughout the economy, wage agreements are including large cost of living adjustments.
You are the manager of a firm that receives revenues of $60,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is..
The Short Run total cost curve of a firm in a hypothetical market is given by. What is the shut down price? What is the break-even point of the firm? What is the equation for the firm’s short run supply schedule?
It’s your 1st yr in college and you have agreed to loan a friend you met $3,000, which your friend will pay you back for at the end of your 4 years. How much will your friend pay you at the end of the 4 years? How much would this annual payment be at..
What is the situation of current tourism of Thailand after the pandemic. If it isn't getting better why is it?
US Airways owns a piece of land near the Pittsburgh International Airport. The land originally cost US Airways $375,000. The airline is considering building a new training center on this land. US Airways determined that the proposal to build the new ..
Select a country of your choice and explain the role of government protectionism in business activities and economic growth. What are the different viewpoints.
If she limits sales to five, she can charge $21,000 each. She will sell six per week if the cost of buying each motor home from the manufacturer.
If expected annual inflation is 4.0% and the price of a golf ball is $8, how many golf balls she can by at the end of the year?
This statistic elucidates how that government antimonopoly strategy has been applied more harshly to the textile industry than to the automobile business.
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