Both M1 and M2 are monetary values much larger than nominal GDP

When the price of a CD is $13 per CD, 39,000,000 CDs per year are supplied. When the price is $15 per CD, 41,000,000 CDs per year are supplied. What is the elasticity of supply for CDs?

A) 2.86 B) 0.35 C) 0.14 D) 0.05

A decrease in the market price of a product will reduce producer surplus because new producers will enter the market

a. True b. False Indicate whether the statement is true or false