ECON 3411 Study Guide - Midterm Guide: Southwest Airlines, Marginal Cost, Marginal Utility
17 Jun 2016
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Questions: a potential entrepreneur is trying to decide whether to open a new health spa. What would you expect to happen to the market for the following: oranges, apples, orange juice, consider the market for two goods that are substitutes, such as pens and pencils. If the price of used textbooks increases by 10 percent, what will happen to the quantity demanded of new textbooks: of the following goods, swiss cheese, cheese, dairy products. Why: the demand for company x"s product is given by qx = 12 - 3px + 4py. Explain: southwest airlines recently announced a 10-year contract that gives pilots a greater opportunity to share in the profits of the airline. Answers: a potential entrepreneur is trying to decide whether to open a new health spa. She currently makes ,000 per year as an aerobics instructor and will have to give up this job if she opens the new health spa.
