Why might it be bad for hotels to not
charge higher prices when rooms are in
higher demand?
a. Arbitrageurs might establish a black
market by reserving rooms and then
selling the reservations to customers.
b. Rooms may be rationed.
c. Without the profit from these high
demand times, hotels would have less
of an incentive to build or expand,
making the long-run scarcity problem
even worse.
d. All of the above.
. The rational-actor paradigm assumes that
people do NOT
a. act rationally.
b. use rules of thumb.
c. act optimally.
d. act self-interestedly.