Erin and Deidre, two residents in Ithaca, New York, are planning a trip to Boston. Erin, the sales manager for a large retailer, has to attend a business meeting
Deidre, a college student on vacation, is planning a leisurely trip to visit friends and relatives. Whose demand curve for air travel is likely to be more elastic?
A) Deidre
B) Erin
C) There is no difference in their price elasticities of demand.
D) The elasticity of the demand curves for Erin and Deidre cannot be determined without more information.
A
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The share of corporate tax in total federal revenues
A) has declined over the past few decades to a relatively low level. B) is larger than the other components of federal revenue. C) has grown significantly in each of the past 10 years. D) is the smallest of all the components of federal tax revenue.
A price support on milk is not in the interest of milk drinkers, so why do elected public officials successfully implement milk price supports?
A) Milk price supports are in the public interest. B) A small number of households (dairy farmers) gain a great deal, while the costs of the support program is spread among millions of other (milk drinking) households. C) Dairy farmers are selfish. D) Milk drinkers are generally unselfish.