Bars often offer specials on appetizers during "happy hour." What does the concept of price discrimination suggest about why this might be profit-maximizing behavior?
What will be an ideal response?
People might have more elastic demand for appetizers during times when they could easily go home and eat dinner and less elastic demand for appetizers during the evening hours after dinner.
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“The market has failed to provide enough rental housing in New York City. This demonstrates another failure of free markets-they may lead to shortages of necessities.” Explain why you agree or disagree.
What will be an ideal response?
In the economic way of thinking, a tropical rainforest is a scarce good. Thus,
A) there is no substitute for a tropical rain forest. B) there is a substitute for a tropical rain forest. C) tropical rains forests should be preserved at any cost. D) tropical rain forests can be preserved at no cost. E) economists don't like tropical rainforests.
State one important consequence of Coasian reasoning on the analysis of contracts
Which of the four countries has an opt-out and chose not the adopt euro yet:
a. Germany b. Denmark c. France d. Austria