Which of the following is a plausible reason that restaurants offer "Senior Citizen Discounts"?
A) Senior citizens tend to have relatively more elastic demands for restaurant meals than other consumer groups.
B) Senior citizens tend to have relatively more inelastic demands for restaurant meals. than other consumer groups.
C) Senior citizens are not very sensitive to changes in prices.
D) Senior citizens are easily fooled by "come-ons" and are therefore frequently victims of price discrimination.
A
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This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to open to trade, domestic producers would have to cut:
A. prices by $3. B. production by 55 units. C. production by 90 units. D. prices by $7.
If, as an entrepreneur, I am earning accounting profits of $70,000 per year and the opportunity cost of my time is $50,000
A) I am earning economic profits of $20,000. B) I am earning economic profits of $70,000. C) I am earning economic losses of $20,000. D) I should close my business.
The larger the diameter of a natural gas pipeline, the lower is the average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This is an example of one reason for:
A. Economies of scale B. Diminishing returns to scale C. Diminishing marginal returns D. Increasing marginal cost
A Market:
A. Exhibits up sloping demand and down sloping supply curves B. Entails the exchange of goods but not services C. Is and institution of mechanism that brings together buyers and sellers D. Always requires face-to-face contact between buyer and seller