If a monopoly suddenly became a perfectly competitive industry, equilibrium output would _________, and the equilibrium price would _________.

When the price of a cup of coffee falls from $3.00 to $2.50, the quantity demanded increases from 1,000 per month to 1,150 per month. Using the midpoint method, the price elasticity of demand is

A) 0.77. B) 1.30. C) 0.07. D) 3.00. E) 2.50.

The income elasticity of demand for store brands of soda (that is, non-name brands) is negative. What does this fact indicate about consumers' perceptions about the store brands?

What will be an ideal response?