French Quarter Inns Drops the Price of a Suite from $225

question 144

Multiple Choice

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ____ product.

• A) reverse-demand
• B) inferior
• C) standard
• D) secondary-demand
• E) prestige

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Definitions:

Hiring Another Worker

The process of adding an additional employee to the workforce, typically in response to increased demand for a business's products or services.

Marginal Revenue Product

The extra income earned by utilizing an additional unit of a production input.

Computer Software Engineers

Professionals who apply engineering principles to design, develop, test, and evaluate software and systems that enable computers to perform their applications.

Productivity

A measure of the efficiency of production, often quantified as the ratio of output to inputs in the production process.