Question

The market price for a New York City taxi medallion is less today than it was in 2013. This is because

Question options:

the city instituted price caps as part of an effort to regulate the monopoly.

New Yorkers have turned to walking and bicycling as ways to get around.

ridesharing services like Uber have made the medallions less valuable.

the city greatly increased the number of medallions by selling new ones.

passenger-on-driver crime has made taxi driving a less desirable line of work.

Concession pricing in movie theaters separates moviegoers into what distinct groups?

Question options:

those who want to eat while watching movies and those who do not

moviegoers who value snacks over being caught engaging in the illegal activity of smuggling in snacks

free-riders who would rather eat their friend’s popcorn instead of buying their own

revenue-building nonsnackers who attend more movies on average than those who purchase concessions

a price-inelastic group of nonsnackers and snack smugglers and a price-elastic group of concession area snackers

Bakeries will often offer a discount on items that were made the day before but did not sell. How is this an example of price discrimination?

Question options:

	Discounting the items, as opposed to giving them away, prevents customers from attempting to resell them.
	Making items of high enough quality to sell the following day means that a bakery has a certain degree of market power.
	It connects the bakery with buyers who value day-old products but aren’t willing to pay the full price for a product that isn’t fresh.
	Individuals with an inelastic demand for baked goods will travel to a different bakery if their preferred bakery runs out of fresh product.
	The bakery is unable to distinguish between types of buyers with fresh product, so it is forced to keep old baked goods in order to maximize profit.

Answer 1

Ans:

1) ridesharing services like Uber have made the medallions less valuable.

The price for New York taxi medallion fell as ride sharing services such as uber entered the market.

2) those who want to eat while watching movies and those who do not

The two distinct groups in which moviegoers​ are saperated by concession pricing are those who want to eat while watching movies and those who do not.

3) It connects the bakery with buyers who value day-old products but aren’t willing to pay the full price for a product that isn’t fresh

Discounting is a form of price discrimination bakeries use to sell day-old products.