The owner of a local restaurant comes to you for help. He needs to know whether or not he should increase the price of the meals he serves. To answer his question, what information would you like to know?
What will be an ideal response?
Ideally, you would want to be able to calculate the price elasticity of demand for meals at the restaurant. It would also be helpful to determine the cross-price elasticity between meals at this restaurant and other restaurants in the area.
You might also like to view...
When economists say entrepreneurs have a comparative advantage in arbitrage activity, they are saying
A) entrepreneurs are efficient at selling their products below cost. B) entrepreneurs are efficient at selling their products at cost. C) entrepreneurs are efficient at discovering opportunities to buy goods low and sell them at higher prices. D) entrepreneurs are efficient at resolving disputes of interest over titles to scarce property rights.
The more generous unemployment benefits are, the ________ the unemployment rate remains and the ________ the time frame people tend to remain unemployed
A) higher; longer B) higher; shorter C) lower; longer D) lower; shorter
Economics is a study of
A) how to make money in the stock market. B) how to run a business successfully. C) the allocation of scarce resources. D) personal finance.
Which of the following is consistent with the ideas underlying the rule of reason legal doctrine, that was established by the U.S. Supreme Court (in the case of U.S. Steel in 1920)?
a. Mere size is not an antitrust offense, because some firms may acquire a large size and monopoly position by being particularly efficient at delivering high-quality products at low prices. b. In addition to a monopoly market structure, the crime of monopolization requires evidence of foreign government involvement. c. The actions of monopoly market structures are legal, even if the firms in the market manage to earn unreasonable profits. d. Every contract or combination in restraint of trade is illegal.