Differentiate geographical pricing from psychological pricing.

Q: Please explain thoroughly with example (if possible).  What are the effects of Basel III on the…

A: Basel III norms introduced in 2010 mainly focused on the tier 1 capital requirements of banks .

Q: Consider an economy with the following information: S-40+.10 Yd IM = 20+.20*Yd T = 60+.25*Y I = 150…

A: Spending multiplier shows the impact of an initial level of government spending on the income level…

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Q: What is stagflation? How may it affect the Phillips Curve? What policy measures may be taken to…

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Q: An economy has full-employment output of 6,000. Government purchases, G, are 1,000. Desired…

A: National saving can be thought of as the amount of remaining income that is not consumed, or spent…

Q: The graph below is Mendork's production possibility curve for the only two goods that it produces:…

A: The approximate cost of producing one more quirk (in terms of quark) is actually how many units of…

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Q: Suppose the inverse demand function is P = a −bQ, where a is the market price when Q=0 and b is the…

A: Given  Inverse demand function: P=a-Qb          ......(1) Firm 1 cost function: C1(Q1)=c1Q1…

Q: Refer to Figure 2. In equilibrium, profits are equal to $0 a. b. C. d. $1300 $1200 $5000

A: A profit-maximizing firm produces at the intersection of MR and MC curves to maximize profit.  i.e.,…

Q: Suppose a temporary rise occurs in world demand for domestic products. Using the line drawing tool,…

A: Given:

Q: The Ingersoll Engineering Company is considering the purchase of a gas flow meter. Its purchase…

A: Initial cost = $9500(purchase price) + $500(shipping and installing price) = $10,000 MARR = 10% Tax…

Q: The following graph shows a hypothetical economy in long-run equilibrium at an expected price level…

A: Savings are the funds that a consumer does not spend on products and services. It is a portion of…

Q: Assume there are two individuals stranded on a deserted island. One of the individuals chooses to…

A: Externalities are described as costs or advantages incurred by a producer but not covered by the…

Q: he residents of country P consume only peaches and pecans. The table below shows the prices and…

A: Given consumption basket = 10 bushels of peaches and 15 bushels of pecans Now, with 2000 is the base…

Q: One reason why a tradable permit system will reduce pollution more efficiently than a…

A: Tradable permits are pollution limits which can be traded in order to create a market in the right…

Q: 8. Suppose U=xx!" and our budget is given as P₁x₁+P2x2 = m, where m is our income. Solve for solve…

A: Given utility : U=x1αx21-α Budget Constraint: p1x1+p2x2=m To obtain the optimal values of x1 and x2,…

Q: Refer to Figure 1. Government revenue from the tax of $20 per unit is $600 $400 $500 $20 a. b. C. d.

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Q: Calculate the GDP deflator and the rate of inflation for each year: (€ million) Nominal GDP Real GDP…

A: In economics, the GDP deflator is a measure of the money price of all new, domestically produced,…

Q: Two traffic signal systems are being considered for an intersection. One system costs $31,000 for…

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Q: When inflation happens in an economy…       Select one: a. Workers who are paid the…

A: The increase in the cost of goods and services throughout the economy is referred to as inflation.…

Q: Prisoners sometimes determine a single good to be used as money. This good becomes Select one: O a.…

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Q: True or False 2. The Fed uses the monetary policy tool of open market operations to affect interest…

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Q: Twin deficits refer to the combination of government budget deficit and trade deficit.  The…

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Q: The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted…

A: The labour force participation rates is calculated as the labour force divided by the total…

Q: Investors For the Future (IFF) LLC provides financial advice to investors in a magazine called New…

A: Initial Cost in today's value = 2500  Annual Operational Cost = 300 Real Interest rate = 5%…

Q: Prominent Sdn Bhd produces furniture at several factories. Its Seberang Prai factory produces office…

A: The point at which a company's revenues and costs are equal is known as the break-even point. The…

Q: QUESTION 5 "Suppose the parameters of the IS curve are a-0,b-3/4, and r= 2%. Suppose further that…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

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Q: 6. Ch. 5 Problems and Applications Q7 Suppose that your demand schedule for pizza is as follows:…

A: Price Elasticity measures the change in quantity due to change in price.  Income Elasticity measures…

Q: Suppose Amari operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly…

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Q: The Bowman Corporation has an $13 million bond obligation outstanding that it is considering…

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Q: The U.S. economy normally grows. How fast does the U.S. economy normally grow in real terms?..

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Q: If a positive externality exists in a market, the unregulated market produces too little of a…

A: Externality is the external cost or benefits that is unavoidable and is borne by the third party.…

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A: Present value is the value of investment in today's dollar  Future value is the value of investment…

Q: Which of the following are characteristics the monopolistically competitive firm and the perfectly…

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Q: 21. Josh, an entrepreneur, has disposed the following products: a. 2 boxes of canned goods @…

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Q: What are the monetary policy goals and how to achieve them using Monetary tools?

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Q: Question 27 Refer to Figure 1. Suppose the per-worker production function in the figure above…

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Q: Write an expression for marginal utility for good 1, marginal utility of good 2, and the marginal…

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Q: Solve the following using the Lagrange multiplier method. iv. Max KL s.t. 4K+2L=20

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Q: Question 11 Use the linear regression models above to answer this question. Estimate the fixed…

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Q: If the effective annual interest rate is 4%, compute the equivalent nominal annual interest…

A: Present value is the value of investment in today's dollar  Future value is the value of investment…

Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.