When market price is above the equilibrium level, it will _____; when price is below the equilibrium level it will _____; when price is at the equilibrium level it will _____.

If the supply of a good is perfectly inelastic, the price elasticity of supply will equal

A) positive infinity. B) one. C) zero. D) none of the above.

Which of the following is a normative economic statement?

A) The price of milk is too high. B) The current high price of milk is the result of reduced worldwide supply. C) When the price of milk rises, the quantity of milk purchased falls. D) When the price of milk rises, the cost of milk-based products rises.