The figure shows the demand curve for hotel rooms at a local resort
a. If the hotel charges $120 per night, how many rooms will they rent?
b. If there are only 40 rooms available, how much are customers willing to pay for a room?
c. If 60 rooms are available, how much are customers willing to pay?
d. What do the dollars in your answer to part (c) represent?
a. At $120 a night, the hotel will rent 20 rooms.
b. If 40 rooms are available, customers are willing to pay $90 per room.
c. If 60 rooms are available, customers are willing to pay $60 per room.
d. The $60 represents the dollars' worth of other goods and services that customers are willing to forgo to get one more night in a hotel room.
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Developing countries are damaged by dead capital because
A) it replaces too many workers, creating unemployment. B) resulting inefficiencies greatly reduce the rate of return on investment. C) it must be sold as scrap. D) none of the above.
If the income effect of a change in the wage dominates the substitution effect, then workers will want to work more when the wage increases
a. True b. False Indicate whether the statement is true or false