Suppose an increase in price decreases quantity demanded from 210 to 190. Using the mid-point formula, the percentage change in quantity demanded is:

Borrowing to pay for long-lived capital expenditures makes sense as

A) the benefits are received in the current year so the burden of paying for them should be spread over many years. B) the benefits are received in the current year so the burden of paying for them should be paid in the current year. C) the benefits are received over many years so the burden of paying for them should be spread over many years. D) the benefits are received over many years so the burden of paying for them should be paid in the current year.

Refer to Figure 7.1. At output level Q1

A) marginal cost is falling. B) average total cost is falling. C) average variable cost is less than average fixed cost. D) marginal cost is less than average total cost. E) all of the above