If a 1% change in the price of a good causes a 1% change in the quantity demanded, the good has an elasticity of demand:

If consumers buy only gasoline and food, at their best affordable choice the marginal rate of substitution between food and gasoline ________ the relative price of food and gasoline

A) must exceed B) must be less than the C) must equal D) might exceed or be less than but not equal to

If the demand for a monopoly's output shifts rightward, the change in quantity produced is NOT predictable because

A) the monopoly is a profit maximizer. B) the monopoly is a price taker. C) the monopoly has no supply curve. D) the monopoly's marginal cost curve might not be upward sloping.