If there are only two airlines that fly between Dallas and New Orleans, what will happen in the market for one airline if the other one goes out of business?
A. The demand curve will shift to the left.
B. The demand curve will shift to the right.
C. There will be a movement to the right along the initial demand curve.
D. There will be a movement to the left along the initial demand curve.
Answer: B
You might also like to view...
With respect to reserve requirements on bank deposits, the Board of Governors can set them
A) at any level the Board desires. B) at any level approved by the Federal Open Market Committee. C) within the bounds of the specific limits imposed by Congress. D) within the bounds of the specific limits set by the Secretary of the Treasury.
Negative marginal revenue means that
a. the firm is maximizing its economic profit b. the firm is maximizing its total revenue c. total revenue is increasing at an increasing rate as output increases d. total revenue is increasing at a decreasing rate as output increases e. total revenue is decreasing as output increases