On a linear demand curve, the price elasticity of demand at the mid-point of the curve is:
a. greater than 1.
b. less than 1

Refer to Scenario 14-1. M1 in this simple economy equals

A) $1,000. B) $2,000. C) $3,000. D) $8,000.

Technological advancements have led to lower prices and an increase in the sale of digital cameras. How does this affect the digital photo printing paper market?

A) The demand curve for digital photo printing paper shifts to the left. B) The supply curve for digital photo printing paper shifts to the left. C) The supply curve for digital photo printing paper shifts to the right. D) The demand curve for digital photo printing paper shifts to the right.