Refer to the figure above. What is the domestic production of pens in Lithasia, after the economy opens up to free trade?

Profits of a monopoly are driven to zero

a. Immediately in the short-run as assets freely move from low-valued uses to high-valued uses instantly b. In the long run because the demand curve becomes more inelastic c. In the long run because the assets eventually move from low to high valued use d. In the short run because the demand curve becomes more elastic

The intent of indexing is to

a. raise tax revenue automatically during inflation. b. shift the short-run Phillips curve to the right. c. take most of the sting out of inflation. d. reduce inflation gradually.