When a monopolistically competitive firm cuts its price to increase its sales, it experiences a gain in revenue due to the

For each pair of items below determine which product would have the higher price elasticity of demand (in absolute value)

a. Insulin for a diabetic or aspirin for someone suffering a headache. b. A new Whirlpool 27 cu.ft. side-by-side refrigerator or electricity to power your all-electric home. c. A can of Red Bull or soft drinks in general.

If, at the world price, domestic producers are producing and selling 100 units of a good, then at the world price plus tariff it follows that

A) they will be producing and selling more than 100 units of the good. B) they will be producing and selling fewer than 100 units of the good. C) producers' surplus will be less than what it is when domestic producers produce and sell 100 units. D) consumers' surplus will be greater than what it is when domestic producers produce and sell 100 units. E) c and d