A heat wave in Las Vegas causes tourists to cancel their hotel room reservations and vacation elsewhere.   ill the heat wave result in a shortage or surplus of Las Vegas hotel rooms at the previous price? Will the price of hotel rooms rise or fall? shortage, fall shortage, rise surplus, rise surplus, fall

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
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A heat wave in Las Vegas causes tourists to cancel their hotel room reservations and vacation elsewhere.

 

ill the heat wave result in a shortage or surplus of Las Vegas hotel rooms at the previous price? Will the price of hotel rooms rise or fall?

shortage, fall
shortage, rise
surplus, rise
surplus, fall
 
 Suppose General Electric, one of the largest suppliers of light bulbs, decides to discontinue its production of light bulbs.
 
Will General Electric's exit from the light bulb market result in a shortage or surplus of light bulbs at the previous price? Will the price of light bulbs rise or fall?
surplus, rise
shortage, fall
shortage, rise
surplus, fall
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