Table 4-5 -Refer to Table 4-5. the Table Above Lists the Highest

question 242

Multiple Choice

Table 4-5

-Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket rises from $20 to $38,

• A) only three tickets will be sold.
• B) consumer surplus decreases from $62 to $12.
• C) consumer surplus increases from $88 to $142.
• D) no one will buy a ticket.

Analyze the impact of price discrimination on consumer and producer surplus.

Recognize the role of elasticity of demand in price discrimination strategies.

Understand legal considerations related to price discrimination, focusing on the Robinson-Patman Act.

Comprehend the reasons behind offering discounts to specific groups like students or seniors.

---

Definitions:

Reimbursed

To be reimbursed means to receive repayment for money that has been spent or lost, usually as a result of conducting business or performing tasks on behalf of another.

Apparent Authority

A situation where a person appears to have been given the power to act on behalf of another, even if no actual authority was granted.

Undisclosed Principal

A principal whose identity is concealed from the third parties with whom the agent is dealing; the rights and obligations of the parties depend on whether the agent makes it clear that she is representing an undisclosed principal rather than operating on her own behalf.

Continuing Business

An ongoing enterprise that maintains its operations over time, adapting to changes as necessary to remain viable.