The consumer optimum (for two goods, A and B) is reached when

In comparison with a perfect competition, a single-price monopolist with the same costs creates a ________ consumer surplus and makes a ________ economic profit

A) smaller; larger B) smaller; smaller C) larger; larger D) larger; smaller

Which of the following statements is true?

a. The demand for tobacco products tends to be elastic. b. Total revenue is maximized when price elasticity of demand is one. c. Goods are said to be price inelastic when the elasticity is greater than two. d. The demand for milk is more elastic than the demand for luxury travel cruises. e. The demand for 5-cent candy is more elastic than the demand for Irish lace tablecloths.