In 2011, apples cost $1.49 a pound. Suppose the CPI was 120 in 2011 and 140 in 2012. If there is no change in the real price of an apple in 2012, what is the price of a pound of apples in 2012?

Education in the United States is heavily subsidized by the government. This fact suggest that

I. less than the efficient amount of education would be provided by an unregulated market. II. the marginal social benefit of education is greater than marginal social cost of education. A) I only B) II only C) both I and II D) neither I nor II

Assuming no change in product demand, a pure monopolist:

A. can increase price and increase sales simultaneously because it dominates the market. B. adds an amount to total revenue that is equal to the price of incremental sales. C. should produce in the range where marginal revenue is negative. D. must lower price to increase sales.