Question 5 – Wage Structure Suppose the 50 % of a country’s population with the lowest income receive 30 % of the nation’s income, that the 50% with the highest income receive 70% of the nation’s income. a) What is the Gini coefficient for the country? b) What is the limitation associated with Gini coefficient measure?

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Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.