A national chain of bookstores has initiated a frequent buyer program. If you buy a frequent buyer card for $10, you are entitled to a 10 percent discount on all purchases for 1 year. This practice is an example of:

Suppose the government raises the price of cheese above the market equilibrium level (P0) by imposing a high minimum price and purchasing all of the excess supply from the market, and these quantities are destroyed. Based on the areas in the figure below, what is the change in consumer surplus after this policy is adopted?  

When the movie Jurassic Park debuted in Westwood, California, the price of tickets was $7.50. After several months the ticket price had fallen to $4.00. This is an example of

The market for semiskilled labor can be represented by the following supply and demand curves:       LD = 38 – 4W      LS = 8 + 6W,                 where L = person hours per year, and W = the wage in dollars per hour. a) Calculate the equilibrium price and quantity that would exist under a free market.  b) The government is contemplating an increase in the minimum wage to $5.00 per hour.  Calculate the impact of the new minimum wage on the quantity of labor supplied and demanded.

Second-degree price discrimination is the practice of charging

The more elastic the demand facing a firm,

Which of the following is NOT true regarding monopoly?

    If the government establishes a price floor of $2.50, how many pounds of berries will be sold?

You produce stereo components for sale in two markets, foreign and domestic, and the two groups of consumers cannot trade with one another. You will charge the higher price in the market with the

Formulas provided in Exam 1.pdf