Refer to Figure 18.3. After trade and specialization begin, the maximum amount of pogo sticks that Livonia can consume is

Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic. As a result, a 7 percent increase in the price charged by the owner of this stand leads to

A) zero peaches sold by this stand. B) no change in the quantity demanded at this stand. C) a 7 percent decrease in the quantity demanded at this stand. D) a 7 percent decrease in demand at this stand. E) a virtually infinite increase in the quantity demanded at this stand.

A shift of the supply curve for farm products to the right in a price inelastic region of the demand curve for farm products

A) reduces price and total revenue. B) increases price and reduces total revenue. C) reduces price and increases total revenue. D) increases prices and total revenue.