A short-run marginal cost function is estimated as SMC = 96 - 4Q + 0.15Q2. Which of the following cost functions is associated with this estimated SMC equation? 

If real GDP ________ aggregate planned expenditure, then as a result firms ________ production

A) exceeds; decrease B) equals; increase C) exceeds; increase D) is less than; decrease E) equals; decrease

The income elasticity of demand is largest for

A) food. B) clothing. C) shelter. D) luxuries.