The price of an airline ticket rises as the amount of time between purchase and flight departure gets smaller. The airlines base the policy on the assumption that
a. consumers are not aware of airline prices.
b. consumer demand is unrelated to prices.
c. consumer demand becomes more elastic as departure time approaches.
d. consumer demand becomes more inelastic as departure time approaches.
D
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Refer to the scenario above. The opportunity cost of producing good X equals:
A) loss in Good Y / loss in Good X. B) loss in Good Y / gain in Good X. C) loss in Good X / loss in Good Y. D) loss in Good X / gain in Good Y.
Moving down along the market demand curve for hot dogs, the
A) maximum price that people are willing to pay for hot dogs increases. B) marginal social benefit of hot dogs decreases. C) marginal social cost of hot dogs increases. D) consumer surplus of the last hot dog consumed increases.
In terms of economic growth, the key measure of the standard of living is
A) real GDP per capita. B) real GDP. C) nominal GDP. D) nominal GDP per capita.
Entry into an oligopoly is
a. possible for anyone b. time consuming c. relatively easy d. impossible e. relatively difficult