Countertrade is an efficient way of doing business.

Patents

A) will create a profit incentive to do research. B) might be welfare reducing if granted for too long a period. C) serve as a barrier to entry. D) All of the above.

Refer to the accompanying figures. If Mallory and Rick are the only two consumers in this market and the price of soda increases from $0.75 to $1.00 per can, the quantity of soda demanded in the market will ________ by ________ cans per month.

A. increase; 20 B. decrease; 20 C. decrease; 40 D. increase; 40