Relative to a Situation Where Only a Single Price Is

question 184

Multiple Choice

Relative to a situation where only a single price is charged, a seller that engages in price discrimination will

• A) charge consumers with an inelastic demand a lower price.
• B) charge consumers with an elastic demand a higher price.
• C) generally produce a larger total output.
• D) decrease social welfare and make all consumers worse off.

---

Definitions:

Economic Life

The expected period of time during which an asset is useful to the average owner.

Amortization Expense

The periodic expense recognized in the financial statements for the gradual write-off of the cost of intangible assets over their useful life.

Research and Development Costs

Expenses associated with the investigation and creation of new products or services, which can include salaries, materials, and overhead costs.

Trademark

A sign, term, or set of words officially recognized or established through legal registration or usage to symbolize a corporation or merchandise.