Suppose the demand for a good is currently unit elastic over the relevant range. Then a new substitute good is introduced to the market. As a result, demand over that range is now likely to be
a. Unit elastic

One of the functions of deliberation councils is to

A) coordinate foreign investment from different countries. B) set educational policy for universities and colleges. C) coordinate government policy and private investment. D) broaden the economies base of exports. E) ensure stability in the country's fiscal and monetary policies.

In the short run, a perfectly competitive firm suffering a loss

a. will close if P < AVC b. will shut down operations if P < MC c. cannot leave the industry even if P < AVC d. can sell off all its resources to competitors e. can raise the price to increase revenues