The Price Elasticity of Demand for Business Air Travel Is

question 114

Multiple Choice

The price elasticity of demand for business air travel is .80 and the price elasticity of demand for leisure air travel is 1.60.Therefore,the demand for leisure air travel

• A) is less elastic than the demand for business travel.
• B) is inelastic.
• C) is more elastic than the demand for business travel.
• D) is unrelated to consumers' incomes.

Evaluate the effects of unemployment insurance and policies on job search behavior and the economy.

Interpret data tables related to employment and unemployment for analysis.

Recognize the short-term and long-term nature of unemployment spells and their implications for policy.

Understand the relationship between stress and behaviors such as overeating, smoking, and alcohol consumption.

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Definitions:

Total Revenue

The total income received by a firm from selling its goods or services, calculated as the quantity sold multiplied by the selling price per unit.

Short-Run Supply Curve

A supply curve that shows the quantity of a product a firm in a purely competitive industry will offer to sell at various prices in the short run; the portion of the firm’s short-run marginal cost curve that lies above its average-variable-cost curve.

Marginal Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit and the quantity of that unit produced.

Supply Curve

A visual chart that illustrates how the price of an item correlates with the amount of the item that sellers are prepared to offer.