Airlines can increase profits by charging higher fares to business customers because those customers have a more elastic demand for airline travel
a. True
b. False
Indicate whether the statement is true or false
False
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If the inflation rate is negative, the price level in an economy is
A) falling. B) rising slowly. C) constant. D) rising rapidly.
With rent seeking by a monopoly
A) the monopolist's average total costs will increase so that its average total cost curve is tangent to the demand curve at the profit-maximizing price. B) a monopoly uses all of what would be its economic profit to prevent other firms from taking its economic rent. C) the full deadweight loss of monopoly is larger than in the absence of rent seeking. D) All of the above answers are correct.
The U.S. inflation adjusted poverty threshold in 2014 was set at $35,000 per year for a family of four.
Answer the following statement true (T) or false (F)
When Marietta chooses to only purchase a combination of goods that lie within her budget line, she:
A. is decreasing utility. B. likely has negative savings. C. must reduce the quantity. D. is maximizing utility.