The percentage change in the quantity of a good demanded is calculated by:
a. multiplying the absolute change in quantity demanded and the average quantity demanded.
b. dividing the absolute change in quantity demanded by the average quantity demanded.
c. multiplying the absolute change in quantity demanded and the total quantity demanded.
d. dividing the absolute change in quantity demanded by the total quantity demanded.
b
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Refer to the scenario above. How will the demand for pens faced by the existing pen manufacturers in Eduland be affected if several firms exit the industry in the long run?
A) The demand curve by existing firms will become perfectly inelastic. B) The demand curve by existing firms will become perfectly elastic. C) The demand faced by existing firms will increase. D) The demand faced by existing firms will decrease.
Critically evaluate the following statement. "Since monopolies are by definition a one-firm industry they are able to charge the consumer the highest price possible."
What will be an ideal response?