12/4 notes

Question 1

is this graph a good model for price discrimination

Answer 1

no, because elastciity is equal for both demands

Question 2

elasticity

Answer 2

responsiveness of teh supply of a good or service after a change in its market price

Question 3

perfect price discrimination

Answer 3

when a business charges the max possible proce for each unit consumed

Question 4

what is equilibrium considered for perfect price discrimination

Answer 4

efficeint

Question 5

what differentiates two types of people

Answer 5

regular

Question 6

why isn’t imperfect compeition considered efficient

Answer 6

they do not efficiently allocate resources. They are inefficient because they have market control.

Question 7

how does perfect compeition benefit consumers

Answer 7

All of the knowledge, such as price, about the goods is equally dispersed among all buyers and sellers. There are no barriers to entering the market.