Movement along the aggregate expenditure line is caused by a change in the level of income

The high-school dropout rate usually declines in an economic recession because

A) a decline in job opportunities lowers the opportunity cost of remaining in high school. B) high schools begin to offer more practical and relevant courses. C) laws are passed to prevent teenagers from entering the labor market. D) recessions increase the demand for education. E) tuition and book prices usually fall in a recession.

How can the market demand for a product be inelastic but the demand for a particular firm is elastic?

A) There is no advertising. B) There is a sufficiently large number of sellers. C) There is only one or two sellers. D) Buyers do not have complete information.