If students' expenditures on airline travel increase as a consequence of more heavily discounted fares, students' demand for airline travel must be
A) income elastic.
B) income inelastic.
C) price elastic.
D) price inelastic.
C
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The marginal principle states that one should
A) increase the level of an activity if the marginal benefit exceeds its marginal cost. B) if possible, pick the level at which the marginal benefit equals the marginal cost. C) decrease the level of an activity if the marginal cost exceeds the marginal benefit. D) all of the above
What is (are) the key characteristic(s) of the agrarian system in Sub-Saharan Africa?
What will be an ideal response?
If the elasticity of demand for cigarettes is 0.4, then an increase in the price of a pack of cigarettes from $5.00 to $6.00 would reduce quantities demanded by about
a. 7 percent. b. 40 percent. c. 42 percent. d. 220 percent.
Suppose there are 50 firms in a perfectly competitive market and each maximizes profit at 50 units of output when market price is $15.00 per unit. One of the points on the market supply curve must be at:
A. Price = $15 and Quantity supplied = 2,500. B. Price = $3.33 and Quantity supplied = 2,500. C. Price = $15 and Quantity supplied = 25,000. D. Price = $3.33 and Quantity supplied = 25,000.