Dissaving occurs when:

Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a corporation. What is one advantage to Torrie of setting up her business as a corporation?

A) By setting up the business as a corporation, Torrie would have both ownership and control over the business. B) By setting up the business as a corporation, Torrie would not face double taxation. C) By setting up the business as a corporation, Torrie would have the ability to share risk with shareholders. D) All of the above would be advantages of setting up her business as a corporation.

If the price elasticity of demand is -0.8 and the firm increases price, revenue will

a. Increase b. Decrease c. Stay constant d. become zero, they would lose all their customers