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Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134421315
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 12, Problem 2.6P
To determine
Comparing the two options, based on equity and efficiency.
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Imagine that you are trying to decide whether to cross a street without using the designated crosswalk at the traffic signal. What are the expected marginal benefits of crossing? The expected marginal costs? How would the following conditions change your benefit–cost equation?
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Economics
In a bygone day, airlines issued discount tickets to students who would be willing to fly on a particular day,with no notice, at a discounted price, one needed to show proof of being of student. The students would have to fly "standby", if and only if there was an available seat, only on that day. Students were able to obtain these tickets, make fictitious reservations, cancel the reservations at the last minute, and secure a seat on the flight at a discounted price. Answer the following questions.
a Is this a form of price discrimination? Why? Include in your analysis differing levels of elasticity, if relevant, and any other feature   Â
b. Why would an airline use this practice?   Provide a dollar and cents example.                        Â
The airlines caught up with this scheme and ended it. What principal of price discrimination did the students violate so as to end it?
Chapter 12 Solutions
Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
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