If the Demand for Some Good Fluctuates,but Supply Is Constant,then

question 20

Multiple Choice

If the demand for some good fluctuates,but supply is constant,then which of the following combinations would generally yield the greatest quantity fluctuations?

• A)large demand fluctuations and inelastic supply
• B)small demand fluctuations and unit elastic supply
• C)small demand fluctuations and elastic supply
• D)large demand fluctuations and elastic supply
• E)small demand fluctuations and inelastic supply

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Definitions:

Full-Fare Customers

Passengers who pay the full, un-discounted price for their tickets, typically providing higher revenue per seat for service providers.

Peak-Load Pricing

A pricing strategy that sets higher prices during times of high demand and lower prices during times of low demand.

Marginal Cost

The additional charge of creating one more unit of a product or service.

Peak-Load Pricing

A pricing strategy that involves adjusting prices in response to fluctuations in demand, particularly during peak usage times.