Vacation tours to Europe invariably package visits to disparate regions: cities, mountains, and the seaside. Bundling, a type of second degree price discrimination, is most profitable when:
a. the preference rankings of vacationers travelling together are negatively correlated.
b. a preference for cities is always higher than preferences for mountain vistas.
c. preference rankings of vacationers travelling together are positively correlated.
d. preference for the seaside is always higher than preferences for city excursions.
e. no one wants to take a European vacation package to cities, mountains, and the seaside.
a
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If your income increases from $33,000 to $41,000 and your consumption increases from $8,000 to $12,000 . your marginal propensity to consume (MPC) is:
a. 0.2. b. 0.4. c. 0.5. d. 0.8. e. 1.0.
How did an increase in consumer confidence change the final equilibrium point of the expansionary policy as shown in this graph?
a. Instead of reaching the target of E3 and at RGDP3, the final result is E4 at RGDPNR.
b. Instead of reaching the target of E2 and at RGDPNR, the final result is E4 at RGDPNR.
c. Instead of reaching the target of E2 and at RGDPNR, the final result is E3 at RGDP3.
d. Instead of reaching the target of E3 and at RGDP3, the final result is E1 at RGDP1.