Competition in the form of advertising, better customer service, or longer warranties can also reduce profits by raising costs

Suppose the observed annual quantity of steel exchanged in the European market is 30 million metric tons, and the observed market price is 90 euros per ton. If the price elasticity of demand for steel is -0.3 in Europe, what is an appropriate value for the price coefficient (b) in a linear demand function ?

A. b = -0.9 B. b = 0.9 C.b = 0.1 D. b = -0.1

Suppose that M = 300, P = 150, and Y = 6. Then the velocity of circulation equals

A) 0.02. B) 0.50. C) 2.00. D) 3.00.