In the figure above, which budget line results in the most real income in terms of compact discs?

A perfectly competitive market has:

a. only one seller b. at least a few sellers c. many buyers and sellers d. firms that set their own prices e. none of the above

The price elasticity of supply is equal to

A) the change in quantity supplied divided by the change in price. B) the percentage change in quantity supplied divided by the percentage change in price. C) the value of the slope of the supply curve. D) the percentage change in price divided by the percentage change in quantity supplied.