​Amusement Parks Often Offer Discounts to Locals with IDs

question 59

Multiple Choice

​Amusement parks often offer discounts to locals with IDs.This is an example of

• A)​A direct discrimination scheme
• B)An indirect discrimination scheme
• C)Diminishing marginal returns
• D)​Vertical integration

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Definitions:

Law of Diminishing

refers to the principle that as one consumes more of a good, the marginal utility (or satisfaction) obtained from consuming an additional unit decreases.

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less costly alternatives, influencing demand patterns as prices fluctuate.

Utility-maximizing

The economic principle whereby consumers adjust their consumption of goods and services to achieve the highest level of satisfaction or utility.

Downward-sloping

Downward-sloping describes a curve or line on a graph that exhibits a decline from left to right, often used to illustrate decreasing prices or quantities in economics.