To maximize profits, an airline will offer _____ prices to customers with _____ demand.
A. lower; inelastic
B. higher; elastic
C. the lowest; the least
D. higher; inelastic
D. higher; inelastic
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Most consumers in stores use marginal analysis to make their buying decisions.
Answer the following statement true (T) or false (F)
An equation that captures how inputs of production are related to output is called a:
A. consumption function. B. GDP deflator. C. production function. D. saving function
A decrease in demand is represented by a
a. movement downward and to the right along a demand curve. b. movement upward and to the left along a demand curve. c. rightward shift of a demand curve. d. leftward shift of a demand curve.
Suppose that 2 units of X and 8 units of Y give a consumer the same satisfaction as 4 units of X and 2 units of Y. Then
A. the marginal rate of substitution of Y for X is 3. B. the consumer is willing to give up 1 unit of Y to obtain 3 more units of X. C. the consumer is willing to give up 3 units of Y to obtain 1 more unit of X. D. both a and c E. both b and c