A Firm Switching from a Single Price to a Price

question 93

Multiple Choice

A firm switching from a single price to a price discrimination scheme will ________ the price for the group of consumers with a relatively elastic demand and ________ the price for the group of consumers with a relatively inelastic demand.

• A) decrease; increase
• B) decrease; decrease
• C) increase; increase
• D) increase; decrease

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Definitions:

Means

The average of a set of numbers, calculated by dividing the sum of all the values by the count of the values.

Equal-variances Test

A statistical test used to check if two populations have equal variances.

Student T-distributed

The Student's t-distribution is a probability distribution that is symmetric and bell-shaped, used especially in small sample sizes for estimating population parameters.

Degrees Of Freedom

The quantity of distinct values or parameters that can be allocated to a statistical test or distribution while adhering to all restrictions.