A family on a trip budgets $800 for sit-down restaurant meals and fast food. If the price of a fast food meal for the family is $20, how many such meals can the family buy if they do not eat at restaurants?

Refer to Figure 15-2. The firm's profit-maximizing price is

A) P1. B) P2. C) P3. D) P4.

When you buy a new car, the dealer presents you with a set of keys and you drive away into the sunset. What would you do if, after agreeing to a price for the car, the dealer told you that a set of keys would cost an additional $5? What does this tell you about the price elasticity of demand for car keys? Explain