With respect to diffusion of responsibility, the diffusion effect is always greater than the size effect

Reverse auctions

A) require customers to fly at unpopular times. B) allow firms to identify customers that have very elastic demand curves. C) Both A and B. D) are used to keep high paying customers from spending too little money.

Domestic demand for a good is QD = 3000 - 25P. The domestic supply of the good is QS = 20P. Foreign producers can supply any quantity at a price (P) of $30

a. What is the domestic equilibrium price and quantity? b. At this domestic equilibrium price, how much of the good will be supplied by domestic producers and how much by foreign producers?