Firms pay celebrities to endorse their products because they believe this will increase the demand for these products.

When dealing with negative externalities, government action is required

A) only if transactions cost are low. B) for any bargain to be successful. C) only in environmental disputes. D) only if transactions costs preclude bargaining between polluter and victim.

If the price of a magazine increases from $5 to $7 and the quantity demanded of the magazines decreases from 10 million per month to 8 million per month, using the midpoint method, what is the price elasticity of demand? Show your work

Is the demand elastic, inelastic, or unit elastic?