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Assume that you are the only pharmacist in a small mid-western small town. You know that the closest pharmacy is about 50 miles away. There are two population groups in your town. The first one if that of young farmers while the second one consists of retirees. Your experience in this market tells you that the young population in you r town is less concerned with price than the retired population. Even better, you know that the price elasticity of demand for the young population is -2 and that retirees have an own price elasticity of demand of -4. Is there any way that you can use this information to your advantage? Will you price drugs differently for these two different groups? Assume that the drugs for the young population and the retirees are different and one group cannot buy the drugs cheaper and sell it to the other.
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Over the last decade numerous foreigners firms have invested in China and used their Chinese factories to produce goods for export. If the Yuan is allowable to float freely against the US dollar on the foreign exchange markets
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