Please be sure to provide information in all of the spaces provided below. When answering the Homework questions, please provide thorough, well-reasoned responses. Short answers will likely not result in high scores.
First Name
Last Name
1. Is there any social benefit to charging "prestige prices" for selected items, or is this just a big scam that victimizes consumers with a lot of money to spend? Please explain.
2. Is it reasonable and fair for goverments to exploit inelasticity of demand in order to levy taxes on products that will likely purchased no matter? Please explain.
3. How might a small retailer use non-pricing variables to compete against a retailing giant like Wal-Mart? Please give four or more examples.
4. Should predatory pricing be legal? Why or why not? Who benefits? Who suffers?
