The Red Jacket Mountain View Inn in New Hampshire charges $150 per room in the winter ski season and $90 during the summer months. The number of rooms and operating costs are constant year round.Which of the following best explains the price difference?
What will be an ideal response?
There is a rightward shift in demand in the winter.
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In the above figure, if D2 is the demand curve, then a price of P3 would result in
A) a shortage of Q3 - Q1. B) a shortage of Q4 - Q3. C) a surplus of Q3 - Q1. D) a surplus of Q4 - Q0.
The figure above shows the demand curve (D) faced by Visual, Inc, a cable TV company, and the firm's marginal revenue (MR), marginal cost (MC), and average cost (LRAC) curves
If Visual is regulated according to the social interest theory, it will serve ________ million households and set a price of ________ per household per month. A) 2; $12 B) 3; $24 C) 4; $12 D) 2; $36
The market interest rate
a. typically increases from one year to the next b. represents the demand for investment c. represents the opportunity cost of funds d. represents the supply of loanable funds e. is not affected by the demand for investment
International trade policies are largely advocated, argued, and lobbied for based more on their distributional effects than on their aggregate or overall effects. What does this imply?
A) Producers will lobby for protectionism even though they may know that their gains from protectionism will be outweighed by the losses to consumers. B) Consumers care more about how policies affect them than how policies affect them and everyone else, too. C) Tariffs are more effective than quotas. D) Consumers' surplus will rise (when it rises) more than producers' surplus will fall (when it falls). E) none of the above