Answer:
Willingness to pay
Revenue
Two
Elastic
Inelastic
Explanation:
Price discrimination is when a producer or a seller charges different prices for the same product usually in different markets.
In price discrimination, a seller attempts to remove or reduce consumer surplus by charging the consumer at his willingness to pay. For price discrimination to be effective, a seller must be able to estimate the willingness to pay of consumers.
Price discrimination is successful when a seller earns higher profits when she discriminates compared to when she didn't price discriminate.
Price discrimination exists in the airline industry. One of the ways price discrimination exists in the airline industry is through charging to check bags. Customers ( people who board airplanes) are distributed into two groups- those who won't pay to check bags and those who would pay to check bags.
It is assumed that those who would pay to check their bags have a price inelastic demand because they are indifferent to paying an extra amount for their luggage.
Inelastic demand is defined as when a small change in price has no effect on quantity demanded.
While it is assumed that those who won't pay to check their bags have an elastic demand because they are unwilling to pay extra to check their luggages.
Elastic demand is when a change in price has effect on quantity demanded.
Answer:
The correct answer is nominal group technique.
Explanation:
This nominal group technique is a type of brain storming where structured meetings are being held among the members, where they will try to take out the solutions to the problems identified by them, and thus facilitating decision making. The meetings are structured here because the goal is to make sure the meetings are not dominated by few individuals and the silent members also share their thoughts and ideas with the rest of the group.
Answer:
c) Investment in a DPP (Direct Participation Program)
Explanation:
Direct Participation Programs are a form of limited partnership. DPP has the lack of liquidity, since ownership interests are not always freely transferrable and require the approval of a general partner of the DPP. Each of the other items listed are more liquid on a short-term basis. Bonds can be sold, bond fund shares can be redeemed, equities are easily sold in the secondary market, and though CDs are not transferrable, the maximum maturity is 1 year or less, so the client would have short-term access to the funds invested.
Answer:
D) Income will increase by $10,000.
Explanation:
The balanced budget multiplier measures the change in aggregate output when government spending increases by increasing taxes. The formula for determining the balanced budget multiplier is by adding government expenditures multiplier and the tax multiplier. The balanced budget multiplier is always equal to one, therefore the net change in aggregate production (income) is equal to the increase in government spending.
Answer: $6,000
Explanation:
Maria is a citizen and resident of Mexico so the only way the U.S. can tax Maria is by taxing income that is in U.S. jurisdiction before it comes to Maria.
This will include the dividend from ownership of stock in a U.S. Corporation, the interest from a U.S. company issued bond and rental income from a property located in the U.S.
The U.S. will be unable to tax the capital gain from sale of stock however because the sale might not be conducted in the U.S.
Income subject to U.S. taxation is therefore:
= 1,000 + 2,000 + 3,000
= $6,000
