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Southwest Airlines is adding $100 million a yer in new fees. under new rules customers only get a partial refund for missed flights, prices are being raised for a third checked bag and for early boarding slots. The airline wants to increase revenue by $1.1 billion. (A). Using the law of demand, do you predict the demand will increase, decrease or stay the same? Give your reason. (B). The demand for airline flight appears to be elastic. What may happen to total revenue if Southwest raises its price?
It is assumed that the toothpast market is perfecty competitive and the current price of a case of toothpaste is $42.00. With an estimated marginal cost function to bas follows: MC=.006Q How would you begin to work a problem of this sort?
Which of the following best describes what happens when consumer income increases? Which of the following best describes what happens when the price of oranges increases?If the government gives each consumer a tax reduction equal to $600 (i.e. increa..
A price discriminating monopolist produces two products that exhibit the following price elasticities of demand and does anybody can have a dominant strategy? Explain.
If one kilogram of flour costs $2 in Canada, and 100 shillings in Kenya, what would Purchasing Power Parity predict the Kenyan shillingto be worth in Canadian dollars.
Compare and contrast the following broadband methods for home Internet access: Cable, DSL, Satellite include a description of each, pro's and con's and why you select one over the other.
1) Does the goal of full employment imply zero unemployment? If not, what types of unemployment would you expect to be present if the economy is at full employment 2) Why is price stability an economic goal What are the problems associated with ra..
What is the Exy and what does that number mean and what is the relationship between these two goods - What would happen to total revenue with the price reduction
1. Inclusive property rights provide an investor: 2. Lawyer Ayres and economist Levitt considered the net benefits of installing a LoJack from the society's standpoint positive, because the annual installation and service charges on this equipment..
In what type of market communications do most companies spend the bulk of their advertising dollars What are some of the advantages of that type of communication
Many suppliers experience economies of scale as output expands, which implies that long-run average costs are falling. At very high levels of production, however, many firms are likely to experience diseconomies of scale.
What is kenyas factor of production for their land and labor. which means what percentage do they use their land for what.
Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
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