While Airlines Are Reducing Costs by Eliminating Services Such as Meals

question 37

Multiple Choice

While airlines are reducing costs by eliminating services such as meals, hotels are ______________________.

• A) increasing food services
• B) investing money to create home comforts like better beds and fluffy pillows
• C) reducing their prices and adding surcharges
• D) increasing costs by adding new training programs to ensure customer satisfaction

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Definitions:

Expected Price Level

The anticipated average price across all goods and services in an economy over a future period.

Aggregate Demand

Unified request for the provision of goods and services in an economy, calculated at a specific scale of overall price for a given duration.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to sell at a given price level in a specific time period.

Long Run Aggregate-Supply

In economics, it represents the total quantity of goods and services that producers in an economy are willing and able to supply at a full employment level, regardless of the price level, over a long period.