If gasoline prices rise by 20% and quantity demanded falls by 5%., then the price elasticity of demand is:

One difference between moral hazard and adverse selection is

a. Moral hazard has to do with unobservable characteristics of individuals b. Adverse selection has to do with unobservable actions of individuals c. Adverse selection is when individuals change their behaviors because of a contract d. Adverse selection is when you choose the wrong answer on a test

A monopolist that maximizes total revenue earns maximum economic profit

a. True b. False Indicate whether the statement is true or false