An airline's flight is about to take off. It has a few empty seats left aboard. If it lowers its prices, it can fill the remaining seats and fly at full capacity. What should be done?
a. Sell the additional standby seats at a discount since the marginal costs of the additional passenger are almost zero and fly at full capacity
b. Sell the additional standby seats without a discount
c. Don't offer the additional seats for any price
d. none of the above
a
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A decrease in the demand for incandescent light bulbs due to changes in consumer tastes, accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions, will result in
A) a decrease in the equilibrium quantity of incandescent light bulbs; the equilibrium price may increase or decrease. B) a decrease in the equilibrium quantity of incandescent light bulbs and no change in the equilibrium price. C) a decrease in the equilibrium price of incandescent light bulbs and no change in the equilibrium quantity. D) a decrease in the equilibrium price of incandescent light bulbs; the equilibrium quantity may increase or decrease.
The vertical aggregate supply curve is consistent with
a. the classical model b. the short run macro model c. a typical firm's supply curve d. a positive demand shock e. a negative demand shock