You are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How much will you have to increase advertising in order to increase demand by 5 percent?

In the figure above, what is the efficient quantity of pesticide to produce?

A) 300 tons per month B) 240 tons per month C) 180 tons per month D) 360 tons per month

The quantity demanded for a good

A) must equal the quantity actually sold. B) can be less than the quantity actually sold. C) can be greater than the quantity actually sold. D) is always greater than the quantity actually sold.