The graph shown portrays a subsidy to buyers. The deadweight loss arising from the subsidy is:

When the price of a textbook is $100, 60 copies are demanded; and when the price of that textbook goes up to $120, 30 copies are demanded. In the price range between $100 and $120, the demand for the textbook is

A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.

Which of the following is true regarding the cost curves faced by a firm?

a. when MC > ATC, AVC must be falling b. when MC > AVC, ATC must be rising c. when MC > ATC, ATC must be rising d. MC and ATC are the same for a perfectly competitive firm e. when MC is a horizontal line, price is constant