Beach resorts raise their prices during the summer months and yet more people book rooms at those times. Is this a violation of the law of demand?
No. During summer months, the demand for beach resort accommodations tends to increase, pushing up both prices and occupancy for the duration. An increase in demand (a shift of the curve. occurs. This does not violate the law of demand, which states that there is an inverse relationship between price and quantity demanded (along the demand curve), all other things being equal.
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Which of the following is not an excise tax?
a. A tax on cigarettes. b. A tax on beer. c. A tax on corporations. d. A tax on airline tickets.
If a prospective employee is not offered his/her reservation utility or reservation wage, then he/she will
A. tend to look for another job or withdraw from the labor market. B. seek a larger fringe benefit package. C. accept the job because a wage below the reservation utility is very attractive. D. use the job as the basis for a career, assuming that wages will increase beyond the marginal revenue product over time.
The ease with which an asset can be converted into the medium of exchange is known as _____
Fill in the blank(s) with correct word
Profits account for about 30 cents out of each dollar spent on goods in the United States.
Answer the following statement true (T) or false (F)