Assume That the Buyers of Good Z Fall into Two

question 171

Multiple Choice

Assume that the buyers of good Z fall into two groups: buyers that have elastic demand and buyers that have inelastic demand. If the firm selling good Z can charge different prices to different groups of people, the firm would prefer to ______________ the price charged to the elastic group and _______________ the price charged to the inelastic group.

• A)raise; lower
• B)lower; lower
• C)lower; raise
• D)raise; raise

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Definitions:

Sympathetic

Part of the autonomic nervous system responsible for the body's fight-or-flight response, regulating heart rate, blood pressure, and other involuntary body functions.

Parasympathetic

Refers to the part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles in the gastrointestinal tract.

Autonomic

Pertaining to the autonomic nervous system, which controls involuntary body functions such as heart rate, digestion, and respiratory rate.

Somatic

Relating to or affecting the body, distinct from the mind or emotions.