Lecture Stuff

Question 1

Ways for a firm to be shady in pricing:

Answer 1

Perfect price discrimination, quantity discounts, separate market into parts (seniors, college students, youth)

Question 2

Is income inequality really that bad?

Answer 2

Lots of low-income people are old and have money saved or are young and just starting careers.

Question 3

What drives currency markets?

Answer 3

Supply and demand. In the long run, tends towards purchasing power parity… however dollar is overvalued in that sense.