A monopolistically competitive firm produces where demand is inelastic

Excludability matters because it:

A. allows owners to set an enforceable price on a good. B. allows consumers to control the price of a good. C. creates a perceived scarcity that allows the seller to keep the price artificially high. D. creates a perceived scarcity that causes buyers to have an inelastic demand for the good.

When a person receives an increase in wealth, what is likely to happen to consumption and saving?

A. Consumption decreases and saving decreases. B. Consumption decreases and saving increases. C. Consumption increases and saving increases. D. Consumption increases and saving decreases.