Economics Homework Thirteen Answers - Student Nine
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Economics homework 13
Mark Brown
2. Free Trade
3. It is supposed to protect the banking system from collapse.
4. Inelastic
6. The high short run prices are to encourage people to purchase tickets early. If consumers wait till a few days before the flight they could force the airline to add another airplane to their schedule to carry the load. This increases their variable costs.
7. The firms sell slightly differentiated goods because if the goods were all the same, then they would be very price elastic. If one producer increased his price then many consumers would buy substitutes.
