Refer to the graph above. Which demand curve is relatively most elastic between P1 and P2?

You observed last week that the price of tomatillos was $4 per pound and that the total quantity of tomatillos consumed in Ames was 50 pounds. This week, you observe that the price of tomatillos increased to $6 per pound and the consumption decreased to 30 pounds. Based on your observations, calculate the elasticity of demand for tomatillos.

A. -2 B. -1.6 C. -0.8 D. -0.5

A price ceiling in a perfectly competitive market

a. leads to the same result as if the market were monopolized b. results in a welfare loss c. is effective only if it is set above the equilibrium price d. may result from collusion among the firms selling in that market e. may result from collusion among the consumers buying in that market