Consider the perfectly competitive firm in the above figure. The shutdown point occurs at a price of

The "law of demand" means that the demand for any scarce good

A) is completely elastic. B) cannot be completely inelastic. C) must be inelastic. D) is only a short-run demand. E) cannot be elastic.

The price elasticity of demand is equal to

A) the percentage change in quantity demanded divided by the percentage change in price. B) the change in quantity demanded divided by the change in price. C) the percentage change in price divided by the percentage change in quantity demanded. D) the value of the slope of the demand curve.