Suppose You Camped Out in Front of an Electronics Store

question 24

Multiple Choice

Suppose you camped out in front of an electronics store to be one of the 200 lucky people able to purchase the latest gaming system. You bought the system for $350. Two weeks later you see that the same system can be sold on e-Bay for $600, so you sell your system. Your market role is as:

• A)a consumer in both of these markets.
• B)a consumer at the electronics store and as a seller on e-Bay.
• C)a consumer at the electronics store; the e-Bay transaction did not occur in a market.
• D)a seller in both of these markets.

Recognize how price discrimination affects consumer prices based on demand elasticity.

Distinguish between necessary and unnecessary conditions for effective price discrimination.

Analyze the relationship between price discrimination and firm's revenue and output.

Comprehend the broader economic implications of profit maximization and entrepreneurial activity.

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Definitions:

Global Trade Flows

The movement of goods and services across international borders, reflecting the interconnectedness of global economies.

Health Care Costs

The total expenditures for services and products related to the treatment and prevention of illness or the maintenance of health.

Labor Pool

The supply of available workers in a particular area or from a specific industry or occupation.

Exports from the United States

Goods or services produced within the United States and sold to buyers in other countries.