Question

A seller may be able to increase revenues by price discriminating - charging a relatively high price to their customers who have the most elastic demand.

true

false

2. Suppose the elasticity of demand for workers in an occupation is very elastic. A minimum wage law for workers in this occupation would not cause unemployment.

true

false

Answer 1

Question 1

True

• A seller may be able to increase revenues by price discriminating
• Here the consumers are paying an amount which is more than tha actual amount they have to pay,So the suppliers attain an increase in their profit margin.

Question 2

False

• The statement- "Suppose the elasticity of demand for workers in an occupation is very elastic. A minimum wage law for workers in this occupation would not cause unemploymen" is false.
• Minimum wage low sometimes can cause unemployment as the workers demand higher wages and they may be finding no job for their expected wage rate.

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