Since an expensive sports car constitutes a greater portion of a consumer's budget than does laundry soap, the price elasticity of demand for an expensive sports car is _____

Assume you pay a premium of $0.50/bu for a put option with a strike price of $4.00/bu and that the current futures price is $4.25/bu. Then, the option is:

A. In-the-money B. At-the-money C. Out-of-the-money D. None of the above

Songwriters and composers press music companies to lower the price for music downloads because

a. demand for on-line music is inelastic b. profits are maximized where price elasticity of demand is -1.0 c. songwriter royalties are a percentage of sales revenue d. profits and total revenue are maximized at different quantities e. profits are maximized at the same prices as sales revenue