A plane from Cairo to Riyadh is about to take off, but it still has a few seats empty. If the average cost per seat is $500, what price should the airline charge passengers in standby to fill in those remaining seats? (Consider that quantitative decisions are made at the margin.) a. At least $1,000 b. Any price that will cover the additional cost of an additional passenger to the airline. c. Slightly more than $500 d. Exactly $500

Q: Pick three products you use every day (in school, at work, or for pleasure—perhaps one of each).…

A:

Q: How do you explain the utility of Publix product or service?

A: Publix is a renowned supermarket chain that offers a wide range of products and services to…

Q: A competitive, profit-maximizing firm pays its workers a wage of $500 per day.  The last worker they…

A: Given, Quantity = 20 units/day Total cost = $500/day Marginal cost = TCQ

Q: do it without using tables

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: price that will result in 15 percent rise in its demand.

A: # the ratio of the percentage change in the quantity demanded by the percentage change in price…

Q: You have been working as a manager of fashion store. During your work you have saved $50,000. You…

A: Explicit cost = utility + salary of clerk + material = 8000 + 20000 + 50000 = 78000 implicit cost =…

Q: does poverty have an effect on juvenile deliquency?

A: Yes, poverty has an effect on juvenile delinquency. Poverty is a major repeating factor of juvenile…

Q: Why are celebrities endorsed brands more expensive?

A: The company’s sales and market share of branded items will be increased with the help of celebrity…

Q: My homework help What happens in the market for beach towels now that the season is over. Graph and…

A: Demand basically refers to the quantity of goods or services that a consumer is willing and able to…

Q: When would a buyer purchase an imitation meat

A: Meat consumption has several negative influences on the economy. It results in greenhouse emissions…

Q: Which of the following best describes why the Hours of Service Regulations were put into place? O To…

A: The driver test is important to ensure the safety of peope with having the all relevant information.…

Q: Can you finish the rest of the chart

A: A variable cost(VC) means expenses are used that increase or fall in the direct extent of production…

Q: A pharmaceutical corporation has developed a unique new drug, making the company a monopoly. Demand…

A: For a monopoly, profit maximization occurs at the point where MR equals MC

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.