If a university charged a lower price for tuition during summer school than during the regular session, in search of added total revenue,
a. administrators likely believe that demand is more elastic during summer school than during the regular session.
b. administrators likely believe that demand is less elastic during summer school than during the regular session.
c. it indicates nothing about likely differences in the elasticity of demand during summer school than during the regular session.
d. administrators likely believe that demand is both lower and less elastic during summer school than during the regular session.
a
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Suppose the demand for hot dogs decreases. In the short run, firms that produce hot dogs will experience a fall in prices, which will induce them to
A) decrease production and reduce the number of workers. B) decrease production and increase the number of workers. C) increase production and reduce the number of workers. D) increase production and increase the number of workers.
The provision of a public good generates a
a. positive externality, as does the use of a common resource. b. positive externality and the use of a common resource generates a negative externality. c. negative externality, as does the use of a common resource. d. negative externality and the use of a common resource generates a positive externality.