When Judges Apply the Principle of Stare Decisis in Deciding

question 10

Multiple Choice

When judges apply the principle of stare decisis in deciding a case before them they are, in effect, applying the

• A) substantive law.
• B) doctrine of precedent.
• C) principles of equity.
• D) rules of public administrative law.
• E) doctrine of precedent and substantive law.

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Definitions:

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum price that consumers are willing to pay for each unit, thereby capturing all possible consumer surplus.

Single Price Profit Maximization

A pricing strategy where a single price is set for all customers to maximize profits, disregarding any market segmentation.

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit which corresponds to the buyer's maximum willingness to pay.

Deadweight Loss

Deadweight loss refers to the loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.