The relationships between elasticity and total revenue hold because
A. total revenue equals price divided by quantity demanded.
B. total revenue equals price times quantity demanded.
C. a drop in price has two opposing effects on the two components of the formula.
D. both b and c are true.
Answer: D
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Historically, which of the following is the most influential factor driving innovation in the hotel industry?
A. Downturns in the economic cycle B. Focus of the populace on travel in general C. Amenity creep D. Importance of innovation as seen by individual property managers E. Whether or not brand equity is seen as important at any given time
To increase domestic investment, a country must increase its saving
a. True b. False Indicate whether the statement is true or false
Average total costs are minimized when:
A. marginal costs begin to increase. B. marginal costs begin to decrease. C. marginal cost is greater than average total cost. D. marginal cost equals average total cost.
Refer to the diagram. Rational expectations theory says that a fully anticipated shift in aggregate demand from AD 1 to AD 2 will:
A. move the economy from a to b to c.
B. move the economy directly from a to c.
C. move the economy from a to a new equilibrium at b.
D. shift the AS curve to the right.