Which of the Following Statements Is False

question 123

Multiple Choice

Which of the following statements is false?

• A)A perfectly price-discriminating monopolist does not lower price on all previous units in order to sell an additional unit of its product.
• B)Second-degree price discrimination is when the seller charges a uniform price per unit for one specific quantity, a lower price of an additional quantity, and so on.
• C)Charging senior citizens less for medicine is an act of third-degree price discrimination.
• D)Charging women less for a car wash is an act of second-degree price discrimination.
• E)A price taker cannot practice price discrimination.

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Definitions:

Giffen Good

A type of inferior good for which demand increases as its price increases, contrary to the typical law of demand.

Slutsky Substitution Effect

A concept in economics that describes how a change in the price of a good affects consumption patterns, separating the effect into income and substitution effects.

Indifference Curve

A graph that shows different combinations of two goods among which a consumer is indifferent, implying the same level of utility for each combination.

Hicks Version

Refers to John Hicks' adaptation of consumer demand theory, particularly in relation to indifference curves and utility maximization.