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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?
Various economic decision makers exist within an economic system. List and briefly discuss the various role players in the economy.There are four role players
A group has chartered a bus to Atlanta. The driver costs $200, the bus costs $500, and parking in Atlanta will be $90. You have already paid $700 to reserve the bus and a driver
Compute the opportunity cost of an increase in the number of hours spent studying in order to earn a 3.0 GPA rather than a 2.0 GPA. Find out opportunity cost of an increase in income from $100 to $150.00
The demand for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Assuming these statements to be correct, How will a successful campaign that decreases the supply of drugs influence the price
What is the free trade level of rice consumption in Japan, how much rice do domestic farmers produce in Japan
The "crowding-out effect" suggests that A. excessive population in the cities is pushing people into the suburbs.B. if consumption spending increases investment spending must decrease. C. tax increases are paid primarily out of saving and, therefore,..
Each car manufacturer undertakes dynamic advertising campaigns seeking to persuade prospective buyers of the superior quality and better style of his cars and reacts very quickly to claims of superiority by his rivals.
Starting in late 1970s and continuing through the 2000s, business environment moved toward relying less on government regulation and more on marketplace to get desired economic targets.
If current output is such that marginal cost exceeds marginal benefit, should more or less resources be allocated to this product?
The Day the Machines Went off
It is common knowledge that governments all over the world are involved in providing education for their citizens. To gauge the effectiveness of public education,
The change in the consumption of good X due to the change in the price of good X while holding the consumer’s utility level constant at the original level of satisfaction.
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