Multiple..CHOICE!!?
a - excess supply means that producers will make less of the good.
b - quantity demanded will exceed quantity supplied, so the price will drop.
c - quantity supplied will exceed quantity demamded, so the price will drop.
d - undersupply means that the good will become very expensive.
2 - How does a company arrange to sell its products to people who are unwilling to pay the top price for them?
a - They allow rebates to some preferred customers who buy a lot of goods.
b - They will charge each custumer the maximum amount they are willing to pay.
c - They will charge different prices according to the group to which the buyer belongs.
d - They change the product and sell a lesser one to people who are unwilling to pay for the top product.
Thank you!
Answer:
1.c. Increase in supply with steady demand results in a lower price.
2.b. The best example is an airline ticket. Business traveler's who travel on short notice (but have to fly) pay much more than people on vacation who book well in advance. This might sound like "c" is the answer, but the airline is not charging by group. They are simply selling the same seats on the airplane for different prices. The goal is to sell every seat for the highest possible price but not everyone will pay this price. The airline simply uses different techniques to fill the plane while maximizing profit.
c,b
oops, typo at first
The answers post by the user, for information only, FunQA.com does not guarantee the right.
More Questions and Answers: