Author Question: Wealthy people are more likely than poor people to use airplanes rather than busses for interurban ... (Read 86 times)

LCritchfi · **on:** Jun 29, 2018

Wealthy people are more likely than poor people to use airplanes rather than busses for interurban travel because

A) their demand for transportation is more elastic.
B) their demand for transportation is more inelastic.
C) they can better afford to use a higher-cost mode of transportation.
D) they are more likely to ignore the relative costs of busses and airplanes.
E) traveling by airplane usually costs them less than traveling by bus.

Question 2

Which creates a larger deadweight loss, perfect competition or a single-price monopoly?

What will be an ideal response?

cici · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

E

Answer to Question 2

The single-price monopoly creates a larger deadweight loss because perfect competition does not create a deadweight loss.