Refer to the information provided in Figure 4.5 below to answer the question(s) that follow. Figure 4.5Refer to Figure 4.5. At the world price of $15 per CD-Rom drive, the United States imports ________ million CD-Rom drives.

Using average price and average quantity, calculate the price elasticity of demand if a price rise from $8 to $10 and decreases the quantity demanded from 20 units to 15 units. The price elasticity of demand equals

A) 2.5. B) 1.29. C) 0.78. D) 0.06

Tova is trying to get a bakery to hire her. She said that if she helped out, the shop could sell an additional 5 cakes per day. If each cake sells for $10 and the owner hires her, then

a. the wage rate must be at least $51 per day. b. Tova's marginal revenue product must be less than the wage rate. c. Tova's marginal revenue product must be positive. d. the wage rate must be at most $50 per day. e. the wage rate must be equal to $40 per day.