When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags. The price elasticity of demand over this price range is equal to

If Country A’s opportunity cost of corn is lower than Country B’s opportunity cost of corn, then

a. Country A has a comparative advantage in the production of corn. b. Country A has an absolute advantage in the production of corn. c. Country A should import corn from Country B. d. Country B should produce just enough corn to satisfy its own residents’ demands.

Professional baseball teams in the United States use only wooden bats. If aluminum bats were permitted, the impact on the wooden bat market would be 

A. a higher price for wooden bats. B. a lower price for wooden bats. C. an increase in the number of firms producing wooden bats. D. higher wages for workers in the wooden bat industry.