Which of the following has the greatest difference between short-run and long-run price elasticities of demand?

Other fundamental things being equal, a decrease in the exchange rate value of domestic currency will cause the current account to

A. overshoot its long-run value. B. move toward a surplus. C. move toward a long-run deficit. D. equal the official settlements balance.

Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed below.CustomerReservation Price($/Rental)A22B16C12D8E6F4 Suppose Island Bikes knows that customers whose reservation prices are at least $10 always rent bikes before noon, while those whose reservation prices are below $10 never do so. If Island bikes charges different price in the morning and in the afternoon, then what will be its daily economic profit?

A. $32 B. $27 C. $33 D. $39