Which of the following is a source of information that helps consumers acquire information about the quality of a good or service?

Answer the following questions true (T) or false (F)

1. A surplus occurs when the actual selling price is above the market equilibrium price. 2. A competitive market equilibrium is a market equilibrium with many buyers and sellers. 3. In response to a shortage, the market price of a good will rise. As the price rises, the demand will decrease and supply will increase until equilibrium is reached.

Migraine medicine increased in price by 6% causing a 1% increase in quantity supplied. Supply is

a. inelastic. b. elastic. c. unit elastic. d. elasticity.