EBK ECONOMICS
13th Edition
ISBN: 8220106798607
Author: Arnold
Publisher: CENGAGE L
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Question
Chapter 4, Problem 1QP
To determine
The need for a rationing device.
Expert Solution & Answer
Explanation of Solution
The given statement is false. The need for a rationing device arises due to the scarcity of resources. We know that the human wants are unlimited though we have only limited resources. Rationing is an effective measure that allocates the limited resources to the people who want to consume them. Rationing also acts as an incentive for the producers to increase their production as they are profit driven. Without an efficient rationing device, the resource cannot be distributed and hence the given statement is not correct.
Economics Concept Introduction
Scarcity: Scarcity refers to the limited availability of resources than the required level.
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Students have asked these similar questions
At the 8:10 café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (that is she cannot price discriminate).
Students with early classes
Students without early classes
Coffee
70
60
Banana
50
100
The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? HINT: if you sell the bundle, can you make more by offering coffee separately?
If so, what price should be charged for the bundle? (Show calculations)
Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000.
Use the following demand data:
Group
Value
Frequency
Baby boomers
$5
20%
Generation X
$4
10%
Generation Y
$3
10%
`Tweeners
$2
10%
Seniors
$2
10%
Others
$0
40%
Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000.
Group
Value
Frequency
Baby boomers
$5
20%
Generation X
$4
10%
Generation Y
$3
10%
`Tweeners
$2
10%
Seniors
$2
10%
Others
$0
40%
ur marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000.
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