If C = 1,500 + 0

question 305

Multiple Choice

If C = 1,500 + 0.75Y and I = 500, then planned saving equals planned investment at aggregate output level of

• A) 2,666.67.
• B) 8,000.
• C) 10,000.
• D) 20,000.

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Definitions:

Yield Management

A strategic approach to pricing and inventory control aimed at maximizing revenue, commonly used in sectors with fixed capacity, such as airlines and hotels.

Demand Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product demanded at those prices.

Unused Capacity

The portion of a system's or facility's total capacity that is not currently being utilized for production or services.

Price Point

The price level for a product or service that is perceived as fair or competitive by customers.