Which one of the following would cause an increase in the demand for hotel rooms in Hawaii?
A) an increase in airfares to Hawaii
B) a decrease in airfares to Hawaii
C) an upward movement along the demand curve for stays in Hawaiian hotel rooms
D) a downward movement along the demand curve for stays in Hawaiian hotel rooms
Answer: B
You might also like to view...
Perfectly competitive firms ____ earn zero economic profit in long-run equilibrium because ____
a. always; firms in perfectly competitive industries always maximize output and so flood the market until the equilibrium price of output is driven to zero b. sometimes; the demand curve for an individual perfectly competitive firm may or may not cross the company's long-run average total cost curve at its lowest point c. always; firms enter whenever their economic profit is positive and exit whenever it's negative, so in long-run equilibrium economic profit must always be zero d. never; no firm would be willing to produce if it received zero economic profit
Which of the following is an example of a positive, as opposed to normative, statement?
a. Inflation is more harmful to the economy than unemployment is. b. If welfare payments increase, the world will be a better place. c. Prices rise when the government prints too much money. d. When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.
If expected inflation increases, the short-run Phillips curve will shift to the left so that inflation will be higher at any given unemployment rate
a. True b. False Indicate whether the statement is true or false
Between October 2014 and October 2015, the CPI in Canada rose from 120 to 124 and the CPI in Mexico rose from 210 to 229.1 . What were the inflation rates for Canada and Mexico over this one-year period?
a. 3.3 percent for Canada and 9.1 percent for Mexico b. 3.3 percent for Canada and 8.3 percent for Mexico c. 3.2 percent for Canada and 9.1 percent for Mexico d. 3.2 percent for Canada and 8.3 percent for Mexico