If the price elasticity of demand for airline tickets is 1.4 for a leisure traveler and 0.7 for a business traveler, then a price-discriminating monopolist would charge
A) a higher price for the business traveler than the leisure traveler.
B) the same price for both travelers.
C) a lower price for the business traveler than the leisure traveler.
D) a less profitable price for the business traveler than the leisure traveler.
Answer: A
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Suppose the price of a can was $5.14. In this case, to maximize its profit the firm illustrated in the figure above would
A) increase its production and would make an economic profit. B) not change its production and would make zero economic profit. C) not change its production and would make an economic profit. D) increase its production and would incur an economic loss. E) not change its production and would incur an economic loss.
Refer to Table 20-15. Looking at the table above, real average hourly earnings were equal to ________ in 2015
A) $9 B) $9.52 C) $10 D) $12