You Are Driving on an Interstate at 70 Mph And

question 69

Multiple Choice

You are driving on an interstate at 70 mph and, in the adjacent lane but moving in the opposite direction, another car is zipping by.From your point of view, the other car seems to pass at 150 mph, which would seem crazy.What is the speed that the odometer should indicate inside the other car?

• A) 80 mph
• B) 55 mph
• C) 220 mph
• D) 110 mph
• E) 150 mph

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Definitions:

Price Discrimination

The strategy of selling the same product or service at different prices to different customers, based on factors like willingness to pay, market segments, or purchase quantity.

Consumer's Age

A demographic factor affecting market preferences and purchasing behavior, reflecting different trends and needs based on age groups.

Profits

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Price-Discriminating Monopolist

A monopolist that charges different prices to different groups of consumers for the same product, to maximize profits by capturing consumer surplus.