Illustrate argument using two demand curves

Assignment Help Business Economics
Reference no: EM133130729

Before Airbnb existed, the website CouchSurfing makes it possible to reserve a "bed" in someone else's home. One catch was that the host was not allowed to charge for lodging. The creation of Airbnb created a marketplace for private lodging where prices are greater than zero.

(a) Explain which groups of consumers are most likely to have a large surplus from the existence of Airbnb relative to hotels. Your answer should focus on the concepts of elasticity and substitutability of hotels and Airbnb rentals. Illustrate your argument using two demand curves.

Reference no: EM133130729

Questions Cloud

Draw a supply and demand model for milk : Draw a supply and demand model for milk showing a binding price ?oor and another model for the milk market showing a binding price ceiling. Explain which model
How can prices and elasticity cause colleges : How can prices and elasticity cause colleges and universities to offer financial aid to low-income students?
Basic elements of the export promotion strategy : Outline the basic elements of the export promotion strategy. Does this strategy lead to higher rates of economic growth? Discuss the potential concerns about it
What must be the per kilometre travel cost : The 1,000 residents of Great Donut Island are all fishermen. Every morning they go to the nearest port to launch their fishing boats and then return in the even
Illustrate argument using two demand curves : Before Airbnb existed, the website CouchSurfing makes it possible to reserve a "bed" in someone else's home. One catch was that the host was not allowed to char
Allocation of resources in health care : (A) Explain how population health analysis can improve the allocation of resources in health care.
What exactly is the natural rate of unemployment : How can increased investment help a country achieve increased economic growth? What are the costs involved?
How will impact a country economic growth : Question: in places where the banking system does not do a good job of allocating capital to where its most productive, what is likely to happen to the savings
How will this impact a country economic growth : In places where the banking system does not do a good job of allocating capital to where it is most productive, what is likely to happen to the savings that pe

Reviews

Write a Review

Business Economics Questions & Answers

  Raises the notion of representative bureaucracy

Your text raises the notion of a "representative bureaucracy." Presumably at its heart this means that the people fleshing out the bureaucracy would have demographic characteristics of the general population.

  Price of copper will rise dramatically in the near future

Builders and construction firms expect that the price of copper will rise dramatically in the near future.

  Determine the eac if the car is sold after 5 years

The maintenance costs are expected to be $200 the first year, with an annual increase of $75. If an interest rate of 6% is used

  What would be the effect of sunny charging

Sunny (UK) Ltd has produced a new DVD player for the UK market. The following demand and supply data are the result of recent market research.

  Why do some workers make more money than others

Why do some workers make more money than others? Must everyone make the same wage? Explain your answers using labor market equilibrium.

  Illustrate what is formula for opportunity cost

Illustrate what is most X that can be produced? most Y. Illustrate what is formula for opportunity cost of X in terms of Y in this economy.

  Wait until you reach your target account value

How many years do you have to wait until you reach your target account value?

  Equilibrium wage rate and quantity of labour

Calculate the equilibrium wage rate and quantity of labour employed and draw a diagram to illustrate your answer.

  How big of a grant would make this project worthwhile

The university is seeking a grants to cover capital cost. How big of a grant would make this project worthwhile (to the university)?

  Superior operating efficiency

Calvin’s Barber Shops, Inc. has a monopoly on barbershop services provided on the south side of Chicago because of restrictive licensing requirements, and not because of superior operating efficiency. As a monopoly, Calvin’s provides all industry out..

  In situation of increasing opportunity costs

“In a situation of increasing opportunity costs, trade can be beneficial to both countries if they have identical tastes. However, trade cannot be beneficial to either country if the countries have identical PPFs” Is this statement correct of incorre..

  Why should we want anything different

If we can get foreigners to give us real goods and services and talk them in to taking pieces of paper in return why should we want anything different?" Do you agree or disagree with this statement?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd