The above figure shows the demand and cost curves facing a monopoly. At the profit-maximizing price, the elasticity of demand equals

Denmark has a comparative advantage in cheese production, and Holland has a comparative advantage in beer production

The two countries initially trade cheese and beer based on their comparative advantages, but the government of Denmark later closes the border to trade with Holland. What is the likely impact of this trade restriction? A) Danish cheese consumers are worse off, and beer producers in Holland are better off. B) Cheese consumers in both countries are worse off. C) Beer consumers in Holland are worse off, and cheese producers in Denmark are better off. D) Beer consumers in Holland are better off, and cheese producers in Holland are better off.

Surpluses cause prices to fall while shortages cause prices to rise

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