Question

In: Economics

Martin is a piano teacher who wants to price discriminate across his students based on their...

Martin is a piano teacher who wants to price discriminate across his students based on their household income. He doesn't know the exact household income of his students, but what is a simple, verifiable characteristic he could use as a proxy for student income?

age

hair color

parents' musical background

prior purchasing history

year in school

address

number of siblings

Solutions

Expert Solution

PRIOR PURCHASING HISTORY

Explanation: Purchasing power is the amount of goods and services that can be purchased with a unit of currency. If one knows about the prior purchasing history, one can estimate the income of that person on the basis of the amount of the money he/she spends.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Martin wants to provide money in his will for an annual bequest to whichever of his...
Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provide $ 7000 in the first​ year, and will grow by 5 ​% per​ year, forever. If the interest rate is 11 ​%, how much must Martin provide to fund this​ bequest? A. $ 93333 B. $ 58333 C. $ 140000 D. $ 116667
a. Martin wants to provide money in his will for an annualbequest to whichever of...
a. Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provide $6,000 in the first year, and will grow by 7% per year, forever. If the interest rate is 10%, how much must Martin provide to fund this bequest?A. $100,000B. $240,000C. $160,000D. $200,000B. Valence Electronics has 201 million shares outstanding. It expects earnings at the end of the year of $730 million. Valence pays out 40%...
A statistics teacher wants to see if there is any difference in the abilities of students...
A statistics teacher wants to see if there is any difference in the abilities of students enrolled in statistics today and those enrolled five years ago. A sample of final examination scores from students enrolled today and from students enrolled five years ago was taken. You are given the following information. Today (Population 1) Five Years Ago (Population 2) Sample Mean 84 89 Sample Variance 112.5 54 Sample Size 45 36 The 92.50% confidence interval for the difference between the...
A statistics teacher wants to see if there is any difference in the abilities of students...
A statistics teacher wants to see if there is any difference in the abilities of students enrolled in statistics today and those enrolled five years ago. A sample of final examination scores from students enrolled today and from students enrolled five years ago was taken. You are given the following information. Today Five Years Ago x̄ 82 88 σ2 112.5 54 n 45 36 The 95% confidence interval for the difference between the two population means is a. -3.08 to...
A statistics teacher wants to see if there is any difference in the abilities of students...
A statistics teacher wants to see if there is any difference in the abilities of students enrolled in statistics today and those enrolled five years ago. A sample of final examination scores from students enrolled today and from students enrolled five years ago was taken. You are given the following information. today (population 1) Five years ago (population 2) sample mean 86 88 sample variance 112.5 54 sample size 45 36 The 92.50% confidence interval for the difference between the...
A teacher has five students who have taken four tests. The teacher uses the following grading...
A teacher has five students who have taken four tests. The teacher uses the following grading scale to assign a letter grade to a student, based on the average of his or her four test scores. -------------------------------------------------------------------- Test Score Letter Grade -------------------------------------------------------------------- 90 – 100 A >= 80 < 90 B >= 70 < 80 C >= 60 < 70 D < 60 F ------------------------------------------------------------------- Write a program that uses Python List of strings to hold the five student names,...
A class contains 200 students. The teacher wants to test whether the mean IQ in the...
A class contains 200 students. The teacher wants to test whether the mean IQ in the class exceeds 120. He chooses a random sample of 16 students and finds that the mean IQ in the sample is 122.8 and the standard deviation of the IQ’s in the sample is 10.9. Let alpha = 0.05. You may assume that IQ's are Normally distributed. Which one of the following is the correct conclusion for this hypothesis test? Group of answer choices A...
A high school physics teacher wondered if his students in the senior class this year will...
A high school physics teacher wondered if his students in the senior class this year will be more likely to go into STEM (Science, Technology, Engineering, Mathematics) majors than Social Science and Liberal Arts majors. He asked each of his 65 students about their first choice for major on their college applications and conducted a Chi-square test for goodness of fit with an alpha level of .05 to see if the number of students choosing each category differs significantly. 35...
"Martin wants to cut back on the saturated and trans fat in his diet. He mentions...
"Martin wants to cut back on the saturated and trans fat in his diet. He mentions to you that he is still going to eat hamburgers and fries, but now he will order the burger without cheese and dip his fries in ketchup instead of Ranch dressing." 1. Identify the sources of saturated and trans fats in Martin's diet. 2. Explain whether or not Martin has reduced his dietary intake of saturated and trans fast? \ 3. What are several...
2. Why does a price-discriminating monopolist earn more profit than a monopolist who does not price-discriminate?...
2. Why does a price-discriminating monopolist earn more profit than a monopolist who does not price-discriminate? What must a monopolist do in order to successfully price discriminate? Give three real world examples of price discrimination practices.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT