Suppose the price of a bag of frozen chicken nuggets decreases from $6.50 to $5.75 and, as a result, the quantity of bags demanded increases from 600 to 800 . Using the midpoint method, the price elasticity of demand for frozen chicken nuggets in the given price range is

Many economists maintain that

a. the aggregate supply curve is nearly horizontal at low levels of real GDP. b. the aggregate supply curve is nearly vertical at very high levels of real GDP. c. any change in aggregate demand will have most of its effect on output when economic activity is low but on prices when the economy is near full employment. d. All of the above are correct.

Branding allows monopolistically competitive firms to:

a. achieve allocative efficiency b. increase demand and profits. c. produce at the lowest marginal cost. d. achieve productive efficiency.