Modern Principles: Microeconomics
3rd Edition
ISBN: 9781429278416
Author: Tyler Cowen, Alex Tabarrok
Publisher: Worth Publishers
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Chapter 3, Problem 11TPS
To determine
Whether good X is a normal good or an inferior good.
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Please send me the graph for part f
You are planning to open a new Italian restaurant in your hometown where there are three other Italian restaurants. You plan to distinguish your restaurant from your competitors by offering northern Italian cuisine and using locally grown organic produce. What is likely to happen in the restaurant market in your hometown after you open?
Part 2
A.
While the demand curves facing your competitors becomes more elastic, your demand curve will be inelastic.
B.
The demand curve facing each restaurant owner shifts to the right.
C.
The demand curve facing each restaurant owner becomes more elastic.
D.
Your competitors are likely to change their menus to make their products more similar to yours.
Consider the following actions undertaken by a firm:
a. charging a higher price for products of higher quality
b. charging different prices to different consumers for the same product when the variation cannot be explained by cost differences
c. charging different prices for products of different qualities
d. charging a lower price to match a competitor's price
Which of the above will be considered price discrimination?
A. a, b, c, and d
B. b and d only
C. a, b, and d only
D. b only
Chapter 3 Solutions
Modern Principles: Microeconomics
Ch. 3 - Prob. 1FTCh. 3 - Prob. 2FTCh. 3 - Prob. 3FTCh. 3 - Prob. 4FTCh. 3 - Prob. 5FTCh. 3 - Prob. 6FTCh. 3 - Prob. 7FTCh. 3 - Prob. 8FTCh. 3 - Prob. 9FTCh. 3 - Prob. 10FT
Ch. 3 - Prob. 11FTCh. 3 - Prob. 12FTCh. 3 - Prob. 13FTCh. 3 - Prob. 1TPSCh. 3 - Prob. 2TPSCh. 3 - Prob. 3TPSCh. 3 - Prob. 4TPSCh. 3 - Prob. 5TPSCh. 3 - Prob. 6TPSCh. 3 - Prob. 7TPSCh. 3 - Prob. 8TPSCh. 3 - Prob. 9TPSCh. 3 - Prob. 10TPSCh. 3 - Prob. 11TPSCh. 3 - Prob. 12TPSCh. 3 - Prob. 13TPSCh. 3 - Prob. 14TPSCh. 3 - Prob. 1CCh. 3 - Prob. 2CCh. 3 - Prob. 3CCh. 3 - Prob. 4CCh. 3 - Prob. 5C
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