Why do airlines tend to lower ticket prices in the winter?
A. Supply is relatively variable, and a drop in demand lowers equilibrium price
B. Demand is relatively variable, and a drop in supply lowers equilibrium price.
C. A drop in both supply and demand lowers equilibrium price.
D. Supply is relatively fixed, and a drop in demand lowers equilibrium price.
E. Demand is relatively fixed, and a drop in supply lowers equilibrium price.
Answer: D
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Which of the following will lead to a movement along the same demand curve?
a. Changes in income. b. Changes in the price of substitute goods. c. Changes in the price of the product. d. Changes in the preference of the consumer.
Which of the following would be most likely to increase your opportunity cost of attending college?
a. a recession in the economy that made finding a job more difficult b. receiving a very attractive offer to start a job today that would permit you to earn about 50 percent more than you expected to make after graduation c. the retirement of your favorite professor under whom you hoped to study during the next semester d. information indicating that salaries were declining and that there were very few openings for college graduates in your field
National Bank has $1 million in deposits, $200,000 in its reserves, and a required reserve ratio of 14 percent. National Bank has ______ available to lend to borrowers.
a. $140,000 b. $860,000 c. $60,000 d. $28,000
Is the minimum wage an example of a price floor or a price ceiling? Why?
What will be an ideal response?