Suppose that Starbucks reduces the price of its premium coffee from $2.20 to $1.80 per cup, and as a result, the quantity sold per day increased from 350 to 450 . Over this price range, the price elasticity of demand for Starbucks coffee is:

One reason why the "fast-casual" restaurant market is competitive is that

A) consumption takes place in public. B) demand for "fast -casual" food is very high. C) it is trendy and therefore is likely to have a customer following. D) barriers to entry are low.

Which of the following does not characterize a perfectly competitive firm that has shut down in the short run?

a. total revenue equals zero b. variable costs equal zero c. the firm suffers a loss d. fixed cost is positive e. fixed cost is zero