Related to the Economics in Practice on P

question 74

Multiple Choice

Related to the Economics in Practice on p.82: If a hurricane results in the supply of hotel rooms decreasing and the demand for hotel rooms increases,the equilibrium price for hotel rooms ________ and the equilibrium quantity of hotel rooms ________.

• A)will increase; will decrease
• B)will increase; may increase,decrease,or stay the same
• C)may increase,decrease,or stay the same; will decrease
• D)may increase,decrease,or stay the same; may increase,decrease,or stay the same

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Definitions:

Vicarious Liability

A legal principle where one party is held liable for the actions of another party, such as an employer being responsible for the acts of its employees.

Strict Liability

A legal principle where responsibility for damages is assigned without the need to prove negligence or fault.

Duty of Care

A legal obligation imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could harm others.

Vicarious Liability

A legal principle where one party is held liable for the actions of another party, typically in employer-employee relationships.