During spring break, students have an elasticity of demand for a trip to Florida of ?3. How much should an airline charge students for a ticket if the price it charges the general public is $360? Assume the general public has an elasticity of ?2.
A. $260
B. $250
C. $270
D. $240
Answer: C
You might also like to view...
When the demand for an imperfect competitor's product is greater than it planned, the firm will
A) increase the price of the product until supply equals demand. B) meet the demand at its set price. C) reduce the price until supply equals demand. D) allow a shortage of the product to develop, without changing the product's price.
When a market is in surplus, there is pressure for the price to move upward
a. True b. False Indicate whether the statement is true or false
Normative statements are
a. prescriptive, whereas positive statements are descriptive. b. descriptive, whereas positive statements are prescriptive. c. backward-looking, whereas positive statements are forward-looking. d. forward-looking, whereas positive statements are backward-looking.
The government regulates the banking industry by
A. conducting frequent audits and examinations. B. limiting the kinds of assets that a bank may own. C. limiting the quantity of some kinds of assets that a bank may own. D. All of these responses are correct.