If Two Identifiable Markets Differ with Respect to Their Price

question 73

Multiple Choice

If two identifiable markets differ with respect to their price elasticity of demand and resale is impossible, a firm with market power will

• A)set a higher price in the market that is more price inelastic.
• B)set a lower price in the market that is more price inelastic.
• C)set price so as to equate the elasticity of demand across markets.
• D)set price equal to marginal cost in both markets.

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Definitions:

Congress

The legislative branch of the United States government, consisting of two houses: the Senate and the House of Representatives, responsible for making laws.

SB 54

This refers to a specific legislative bill and its numbering can vary by jurisdiction; unless defined by context, it would be unclear which law or resolution is being referred to.

Sanctuary State

A state that adopts policies to protect undocumented immigrants, often by not cooperating fully with federal immigration enforcement efforts.

Supremacy Clause

The clause within the United States Constitution establishing that federal law takes precedence over state law if there is any conflict between them.