The PAL-V Liberty Is a Two-Seat, Gas-Powered Gyrocopter with a Flying

question 186

Multiple Choice

The PAL-V Liberty is a two-seat, gas-powered gyrocopter with a flying range of about 250 miles at maximum weight. In car mode, the three-wheeled vehicle can hit 100 mph. Its maker is seeking safety certification in Europe, and 90 initial production models are now for sale starting at $399,000. The most likely prospective customers for this flying car would include

• A) students who attend college at least 500 miles away from home.
• B) retired seniors receiving Social Security.
• C) executives for whom time is extremely important.
• D) teens who like to try new things.
• E) families in need of a second vehicle.

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Definitions:

Industry Supply

The total output of goods or services that firms in a specific industry are willing and able to sell at various prices, over a certain period of time.

Purely Competitive Industry

A market structure where many firms offer products or services that are similar, allowing for free entry and exit, and ensuring no single firm can influence market prices.

Long-Run Adjustments

Changes in the scale of production or in the input mix used by firms in response to economic conditions over a period where all inputs can be varied.

Market Supply

The total amount of a product or service that is available for purchase at various price points in a market at a given time.