​Arbitrage

question 43

Multiple Choice

​Arbitrage

• A)​Is the act of to buying low in one market and selling high in another market
• B)Can force a seller to go back to uniform pricing
• C)Can offset the benefits of direct price discrimination
• D)​All of the above

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Definitions:

Tape Recorder

An electronic device used for recording sound on magnetic tape and usually capable of playback.

Money

A medium of exchange used to facilitate transactions of goods and services.

Producer's Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received from its sale.

Supply Curve

A graph showing the relationship between the price of a good and the amount of it that suppliers are willing to produce and sell, under the assumption of other conditions being constant.