One of the effects of gas prices rising from about $2 to about $4 per gallon was airlines ordering new, fuel-efficient aircraft

Refer to Figure 7-2. The market equilibrium price is

A) $60. B) $50. C) $40. D) < $40.

The ________ elastic a firm's demand curve, the greater its ________

A) less; monopoly power B) less; output C) more; monopoly power D) more; costs