The price elasticity of demand for business air travel is .80 and the price elasticity of demand for leisure air travel is 1.60. Therefore, the demand for leisure air travel
A. is less elastic than the demand for business travel.
B. is inelastic.
C. is more elastic than the demand for business travel.
D. is unrelated to consumers' incomes.
C. is more elastic than the demand for business travel.
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Common causes for a backflow in migration include the following, except:
A. Expected gains in the new country are exceeded by actual gains B. Living costs in the new country are higher than expected C. Costs of being away from family and friends are greater than expected D. Anticipated jobs and promotions are not found in the new country
Why do economists refer to the pricing strategies of oligopoly firms as a prisoner's dilemma game?
What will be an ideal response?
Let Kj and Lj denote the capital and labor inputs in the production of good j (j = S,T), then good S is said to be capital intensive relative to good T if
A) KS > KT. B) KS/LS > KT/LT. C) LS < LT. D) All of the above.
Farmer Fanny sells her crops in a perfectly competitive market. If she produces 500 bushels for total revenue of $3,000 and if harvesting the 501st bushel would raise her total cost from $2,500 to $2,510, her
a. revenue will increase by $4 if she harvests the 501st bushel b. revenue will fall by $4 if she harvests the 501st bushel c. average fixed cost will rise if she harvests the 501st bushel d. profit will fall by $10 if she harvests the 501st bushel e. profit will fall by $4 if she harvests the 501st bushel