If the price were $20, what would the firm do in the (a) short run? (b) long run?

The current price floor in the agricultural lettuce market makes it such that the price of lettuce is 25% higher than the equilibrium price and that 100 heads of lettuce are demanded. Assuming that the elasticity of demand for lettuce is -0.50, how much would revenue (P ? Q) change for the lettuce company if the government removed the current price floor?

A) Revenue will increase by $15.60. B) Revenue will decrease by $15.60. C) Revenue will increase by $40.60. D) Revenue will increase by $ 9.40.

During recessions

a. sales and profits fall. b. sales and profits rise. c. sales rise, profits fall. d. profits fall, sales rise.