Economic theory predicts that a profit maximizing car rental agency with some market power would set its prices in what way?
a. Charge the same for both weekday and weekend rentals.
b. Charge more for weekend rentals and less for weekday rentals.
c. Charge more for rentals during the week and less for weekend rentals.
c. Charge more for rentals during the week and less for weekend rentals. Apply concept of price discrimination to another market.
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What is the name of the least amount that legally may be paid to most workers for an hour of work?
a. equilibrium price b. supply cost c. price floor d. minimum wage
On the 45-degree line diagram, for points that lie above the 45-degree line
A) planned aggregate expenditure is less than GDP. B) planned aggregate expenditure is greater than GDP. C) planned aggregate expenditure is equal to GDP. D) planned aggregate expenditure is less than aggregate income.