A monopoly incurs a marginal cost of $1 for each unit produced. If the price elasticity of demand equals -2.0, the monopoly maximizes profit by charging a price of

If a tax on a good is doubled, the deadweight loss from the tax

a. stays the same b. doubles c. increases by a factor of four d. could rise or fall

China began pegging its currency, the yuan, to the dollar in 1994. Because the yuan was ________ at the pegged exchange rate, the level of Chinese exports remained ________ than they would have been if the exchange rate were allowed to float freely

A) overvalued; lower B) overvalued; higher C) undervalued; higher D) undervalued; lower