elasticities

Do you think price discrimination through coupons is fair? Should there be laws against this behavior? Why or why not?

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Price discrimination One method of price discrimination for firms is the use of coupons and rebates. Firms are basically allowing consumers to self-identify their respective price elasticities of demand for a product. Describe the last time you used a coupon or a rebate, and another time where you knew a coupon might be available and … Read more

Explain why high-income households will tend to have lower price elasticities of demand for food compared with low-income households, all other things being equal.

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True and False If an increase in the price of Arnott’s biscuits from $2 to $2.50 a packet causes quantity demanded to decrease from 8,500 to 7,500 packets a day, the demand for Arnott’s biscuits within this price range is price inelastic. If the demand for Flora margarine is price elastic, its manufacturer should raise … Read more