Airline knows from exp. Vacation travel has elastic demand for travel whereas business travels have an inelastic demand for travel in order maximizes the airline should?
A. Offer everyone a discount to increase sales.
B. Increase price to everyone.
C. Try to increase price for vacation travelers and decrease price for business travelers.
D. Try to decrease price for vacation travelers and increase price for business travelers.
E. Ignore this information.
D. Try to decrease price for vacation travelers and increase price for business travelers.
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A given supply curve illustrates
A) the relationship between price and quantity supplied. B) the effect of a change in resource costs on quantity supplied. C) the effect of a change in technology on quantity supplied. D) the relationship between expected future prices and quantity supplied.
If the nominal exchange rate e is foreign currency per dollar, the domestic price is P, and the foreign price is P*, then the real exchange rate is defined as
a. e(P/P). b. e(P/P). c. e + P/P. d. e - P/P.