Each of the four firms in an industry has a market share of 25 percent. The Herfindahl-Hirschman Index equals

The above figure shows the U.S. market for chocolate. With no international trade, producer surplus is equal to

A) area A + area B + area C + area D. B) area B + area C + area D + area E. C) area B + area C + area D. D) area C + area D. E) area E.

Which of the following statements correctly characterizes the elasticity of demand for food?

a. While food demand is not very responsive to changes in price, increases in income produce big increases in the demand for food. b. As income increases, the quantity demanded of food decreases. c. If the price of food falls by 5 percent, quantity demanded will rise by less than 5 percent. d. People consume the same amount of food regardless of the price of food.