Airline knows from exp. Vacation travel has elastic demand for travel whereas business travels have an inelastic demand for travel in order maximizes the airline should?
A. Offer everyone a discount to increase sales.
B. Increase price to everyone.
C. Try to increase price for vacation travelers and decrease price for business travelers.
D. Try to decrease price for vacation travelers and increase price for business travelers.
E. Ignore this information.
D. Try to decrease price for vacation travelers and increase price for business travelers.
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According to the textbook, the noise of jet engines is not a negative externality for baggage handlers
A) because it leaves no residue in the environment. B) because the benefits are greater than the costs. C) because they are paid to live with the noise. D) because they wear hearing-protection devices. E) unless it leaves them with permanent hearing loss.
If "an apple a day keeps the doctor away" and you are only interested in keeping the doctor away—which you value at 100 utils—what is the total utility you derive consuming 2 apples and what is the marginal utility of the second apple?
a. 200; 100 b. 100; 200 c. zero; 100 d. 100; zero e. 200; zero
Which of the following is a problem of economic dynamics?
a. Determining how an equilibrium changes when an exogenous variable changes. b. Finding the Nash equilibrium in the Prisoners' Dilemma. c. Solving a simple monopoly's profit-maximization problem. d. Modeling the process by which an equilibrium is achieved.
Refer to the information provided in Figure 6.14 below to answer the question(s) that follow.
Figure 6.14Refer to Figure 6.14. If the price of an ice cream cone is $2, the price of ice cream sandwiches is
A. $2. B. $3. C. $50. D. $100.