Figure 16-1 -Refer to Figure 16-1.What Is the Price Charged Under Perfect

question 156

Multiple Choice

Figure 16-1

-Refer to Figure 16-1.What is the price charged under perfect price discrimination?

• A)P₃
• B)P₄
• C)a range of prices corresponding to the demand curve from P₃ and above
• D)a range of prices corresponding to the demand curve from P₄ and above

---

Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

Unemployment

The situation when individuals who are capable of working and willing to work cannot find employment.

Balance of Payments

A comprehensive record of all economic transactions between residents of a country and the rest of the world during a specific period.

Balance-of-Economic Transactions

A record of all economic transactions between residents of a country and the rest of the world during a particular period, including trade, investments, and financial transfers.