A "Twofold" Change Is When

question 70

Multiple Choice

A "twofold" change is when

• A) income goes up and then it goes down.
• B) the equilibrium price of both a complement and a substitute changes.
• C) supply and demand both shift.
• D) equilibrium price and equilibrium quantity both change.
• E) some input costs go up and some go down.

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Definitions:

Price Discriminate

The strategy of selling the same product or service at different prices to different groups of consumers, often based on their willingness to pay.

Frequent Buyer Program

A customer loyalty scheme where consumers are rewarded for making repeated purchases with a particular company.

Peak-load Pricing

A pricing strategy used to regulate demand by charging higher prices during peak usage times and lower prices during off-peak times.

Intertemporal Price Discrimination

A pricing strategy where a seller changes prices over time for the same product or service to different consumers, aiming to maximize profits by targeting price sensitivity at different time periods.