According to the above figure, the profit-maximizing output for this monopolist is found directly below the letter

What are the two tools of fiscal policy that governments can use to stabilize an economy?

A) taxation and controlling exports B) government spending and taxation C) government spending and technology improvements D) taxation and controlling imports

Assume that you own a small boutique hotel. In an attempt to raise revenue, you reduce your rates by 20 percent. However, your revenue falls. What does this indicate about the demand for your boutique hotel rooms?

A) Demand is inelastic. B) Boutique hotel rooms are inferior goods. C) The demand curve for your hotel rooms is vertical. D) Demand is elastic.