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Question: You manage a popular nightclub, and lately revenues have been disappointing Your bouncer suggests...

Show transcribed image text You manage a popular nightclub, and lately revenues have been disappointing Your bouncer suggests that raising drink prices will increase revenues. Your bartender suggests that decreasing drink prices will increase revenues. You aren't sure who is right, but you do know that: a) Your bouncer thinks the demand for drinks is elastic and the bartender thinks the demand for drinks is inelastic. b) Your bouncer thinks the demand for drinks is inelastic and the bartender thinks the demand for drinks is elastic. c) Both the bouncer and bartender think the demand for drinks is elastic. d) Both the bouncer and bartender think the demand for drinks is inelastic. French fries and hamburgers are complements. Suppose that the cost of the ingredients used to make hamburgers rises, so that the price of a hamburger rises. Then, for french fries the equilibrium relative price _____ and the equilibrium quantity _______. rises; increases rises; decreases falls; increases falls; decreases

You manage a popular nightclub, and lately revenues have been disappointing Your bouncer suggests that raising drink prices will increase revenues. Your bartender suggests that decreasing drink prices will increase revenues. You aren't sure who is right, but you do know that: a) Your bouncer thinks the demand for drinks is elastic and the bartender thinks the demand for drinks is inelastic. b) Your bouncer thinks the demand for drinks is inelastic and the bartender thinks the demand for drinks is elastic. c) Both the bouncer and bartender think the demand for drinks is elastic. d) Both the bouncer and bartender think the demand for drinks is inelastic. French fries and hamburgers are complements. Suppose that the cost of the ingredients used to make hamburgers rises, so that the price of a hamburger rises. Then, for french fries the equilibrium relative price _____ and the equilibrium quantity _______. rises; increases rises; decreases falls; increases falls; decreases