If demand elasticity of airline tickets is 3, what percentage change in quantity would the airlines expect from a 10% increase in price?
What will be an ideal response?
A 30% decrease in quantity
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In a payoff matrix for a three-player game, there are three payoffs in each cell. The third payoff goes to the column player
Indicate whether the statement is true or false
If people have a positive rate of time preference, they
a. must be rewarded for saving b. are willing to pay more for a good that saves them money if they hold on to it a long time c. prefer to consume in the future when things are cheaper d. prefer time deposits to savings accounts e. prefer leisure over labor
In contrast to a perfectly competitive firm, a monopolist operates in the long run at a quantity of output at which:
a. P = MC. b. MR = MC. c. P = ATC. d. P > MR.
The three problems of resource allocation are faced by
a. traditional societies b. command systems c. centrally planned economies d. market economies e. all types of societies