Nominal increases take into account inflation adjustments over a period of time.

Which of the following is not characteristic of perfect competition?

a. many buyers and sellers b. brand name advertising c. standardized products d. fully informed buyers and sellers e. free entry and exit of firms

The elasticity of supply for a product will be 2 if:

A. A 1 percent decrease in the price causes a 0.2 percent decrease in quantity supplied B. A 2 percent decrease in price causes a 1 percent decrease in quantity supplied C. A 1 percent decrease in price causes a 2 percent decrease in quantity supplied D. A 2 percent decrease in price causes a 2 percent decrease in quantity supplied