It is impossible to create a free market system that promotes economic efficiency

Which of the following would lead to an increase in the supply of ethnic restaurants in a college town?

A) An increase in the wages paid to restaurant workers B) An increase in the price of American chain restaurants, and consumers regard American chain restaurants and ethnic restaurants as substitutes C) An increase in the demand for ethnic restaurants D) All of the above. E) None of the above.

When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags. The price elasticity of demand over this price range is equal to

A) 3. B) 3/7 or 0.4286. C) 1/3 or 0.3333. D) 1/4 or 0.25.