Suppose the inverse demand curve for a good is expressed as Q = 50 - 2p. If the good currently sells for $3, then the price elasticity of demand is

Suppose the measured unemployment rate is 6.1% and the true natural rate of unemployment is 5.1%. If the chair of the Fed believes the natural rate of unemployment to be 6.7%, then the chair will

A) stimulate the economy when it should be slowed. B) slow the economy when it should be stimulated. C) stimulate the economy, exactly as called for. D) slow the economy, exactly as called for.

Relative to the case in which two identical firms choose quantities simultaneously in a Cournot model, if one of the two moves first and is observed by the other, how would this affect its output?

a. it would increase its output, more so if it could deter the other from entering the market at all. b. it would increase its output, but would moderate this increase if it were concerned about entry deterrence. c. it would decrease its output if it couldn't deter entry and increase it otherwise. d. it would decrease its output whether or not it wanted to deter entry.