Consider the following linear demand function where QD = quantity demanded, P = selling price, and Y = disposable income: QD = ?36 ?2.1P + .24Y The coefficient of P (i.e., ?2.1) indicates that (all other things being held constant):

a. for a one percent increase in price, quantity demanded would decline by 2.1 percent
b. for a one unit increase in price, quantity demanded would decline by 2.1 units
c. for a one percent increase in price, quantity demanded would decline by 2.1 units
d. for a one unit increase in price, quantity demanded would decline by 2.1 percent
e. none of the above

b

Economics

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Indicate whether the statement is true or false

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In the long-run equilibrium in perfect competition,

A) producer surplus is positive. B) producer surplus is negative. C) producer surplus is greater than consumer surplus. D) producer surplus is less than consumer surplus.

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