If an airline chooses to practice price discrimination to increase profit, it will:
a. charge higher fares to those with a more elastic demand.
b. charge higher fares to those with a less elastic demand.
c. determine a fare for each passenger according to the costs of serving the passenger.
d. charge everyone the same fare.
Ans: b. charge higher fares to those with a less elastic demand.
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The number of dollars that the commercial banking system can add to the money supply for each dollar of new reserves created by the Fed
A) cannot legally be greater than 8 nor less than 2. B) is governed largely by reserve requirements and the form in which the public chooses to hold money. C) is less than one because a portion of new reserves must be retained in bank vaults or on deposit with the Fed. D) would increase if the public decided to transfer the amounts currently in commercial bank savings accounts into checking accounts.
For a vertical demand curve,
a. the slope is undefined, and the price elasticity of demand is equal to 0. b. the slope is equal to 0, and the price elasticity of demand is undefined. c. both the slope and price elasticity of demand are undefined. d. both the slope and price elasticity of demand are equal to 0.