A firm is observed using 15 units of input X when the price of X is $2. If the price of X increases to $4, the firm uses only 6 units of it. What is the price elasticity of demand for input X? (Use the simple formula for percent change: [(new# - old#)/old#] x 100%)

A graphic representation of the quantities of a good that will be bought at each price

a. demand curve b. income effect c. elastic d. inferior good

Suppose a firm in a competitive market reduces its output by 20 percent. As a result, the price of its output is likely to

a. increase. b. remain unchanged. c. decrease by less than 20 percent. d. decrease by more than 20 percent.