Some hotels in Myrtle Beach, South Carolina charge over $200 a night in the summer but sometimes as little as $99 a night in the winter. Use supply and demand analysis, including graphical and verbal explanation, for these winter “sales.”
What will be an ideal response?
A sample graph is shown (Figure 4-26). Demand falls in the winter, so that equilibrium price decreases with the supply unchanged resulting in a shift of demand to the left and a lower price and quantity in winter months.
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Refer to Table 22-5. Consider the statistics in the table above in describing the industrialized countries. Are these consistent with the economic growth model? Briefly explain
What will be an ideal response?
Concentration of resources on higher rather than basic education in developing countries tends to lead to
(a) greater inequality. (b) lower fertility. (c) less international migration. (d) more job creation.
If the expected inflation rate is unchanged, a fall in the natural rate of unemployment would
A) shift the short-run Phillips curve to the right. B) not shift the short-run Phillips curve. C) shift the short-run Phillips curve to the left. D) shift the short-run Phillips curve to the left and shift the long-run Phillips curve to the right.
If high incomes inspire more saving than low incomes ________
A) the average propensity to consume falls as income rises B) the marginal propensity to consume rises as income rises C) autonomous consumption falls as income rises D) the average propensity to consume rises as wealth rises