Blossom, Inc. sells 500 bottles of perfume a month when the price is $7. A huge increase in resource costs forces Blossom to raise price to $9, and the firm only manages to sell 460 bottles of perfume. The price elasticity of demand is:

In a perfectly competitive resource market, the Marginal Revenue Product Curve is

A) vertical. B) horizontal. C) downward sloping. D) upward sloping.

The Fed could use reserve requirements as a monetary policy instrument. In terms of desirable features for policy instruments, assess the viability of using reserve requirements.

What will be an ideal response?