Helen's Honey Hut supplies 20 jars of honey per week when the price of honey is $6 per jar and supplies 30 jars per week when the price of is $8 per jar, so the price elasticity of supply over this price range is 1.4

Which of the following most closely approximates the conditions of a monopolistically competitive market?

a. The market for Grade A eggs, which is characterized by a large number of firms producing a homogeneous product. b. The restaurant industry, which is characterized by firms producing a differentiated product in a market with low entry barriers. c. Local cable television service, where a licensed supplier competes with firms offering satellite service. d. The market for jumbo aircraft, where one major domestic firm competes with one major foreign firm.

Which of the following will not shift the demand curve for televisions?

a. An increase in the price of televisions. b. An increase in consumer income. c. An increase in the price of radios (a substitute). d. An increase in the price of cable service (a complement).