Quantity Discrimination Makes Sense If

question 87

Multiple Choice

Quantity discrimination makes sense if

• A)buyers of smaller quantities are more price sensitive than buyers of larger quantities.
• B)buyers of smaller quantities are less price sensitive than buyers of larger quantities.
• C)demand for the good is perfectly elastic.
• D)the lower price for larger quantities encourages all consumers to purchase the larger quantity.

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Definitions:

Net Present Value

A financial metric indicating the value of all future cash flows of an investment, discounted back to present value.

Monthly Interest Rate

The interest rate applied on a monthly basis to loans or financial accounts, often used to calculate the monthly interest payments or earnings.

Net Savings

The amount of money saved after all expenses have been deducted.

Credit Agency

An organization that evaluates and rates the creditworthiness of individuals or corporations.