For the monopoly shown in the figure above, the profit maximizing price is ________ per unit

Elsie is a perfectly competitive dairy farmer. The market price of milk was $2.40 but just fell to $2.20 a gallon. Elsie

A) can sell as much milk as she wants at $2.20 a gallon. B) will have to charge some customers $2.40 a gallon to stay in business. C) will produce the same amount of milk at both prices. D) can sell more at the lower price because the quantity demanded is higher at lower prices. E) will be able to charge her initial customers $2.40 a gallon.

Use the economic way of thinking to answer the following question: Does a diabetic need insulin?

A) No B) Yes, and therefore diabetics will always buy all what they need. C) Probably, but diabetics often find substitutes for insulin in the real world. D) Probably, but diabetics only care about the expected cost of insulin and ignore the expected benefits.