An 18 percent increase in the price of a small car results in a 10 percent increase in the quantity supplied. The price elasticity of supply is equal to

If factor prices decrease:

a) a firm will move down along its long-run average cost curve only. b) a firm will move down along both its long-run and short-run average cost curves. c) both the long-run and short-run average cost curves will shift downward. d) there will be no change in the cost curves in the long run. e) there will be a downward shift in the long-run average cost curve but not in the short-run average cost curve.

"We offer the best deal in town. If somebody charges a lower price, bring in their ad and we'll beat it!" From the economic point of view, the firm promising to match its competitor's low prices is attempting to

A) lie. B) cheat. C) learn more about the market. D) do nothing more than bait and switch their customers.