6 Quiz - 1 Refer to the above table Over the 4 price range...

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1. Refer to the above table. Over the 4 price range, supply is: A) perfectly elastic. B) elastic. C) perfectly inelastic. D) inelastic. 2. (Last Word) Suppose that a firm has "pricing power" and can segregate its market into two distinct groups based on differences in elasticities of demand. The firm might charge: A) a lower price to the group that has the less elastic demand. B) a higher price to the group that has the less elastic demand. C) the same price to both groups but include a "free" related product for the group that has an inelastic demand. D) the same price to both groups but make it difficult for the group with the more elastic demand to gain access to the product. 3. Consumer surplus: A) is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price. B) the difference between the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept. C) the difference between the minimum prices producers are willing to accept for a product and the higher
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6 Quiz - 1 Refer to the above table Over the 4 price range...

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