Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity demanded?

GDP can increase from one year to the next by:

A) increases in prices while quantities of goods and services are constant. B) increases in the quantities of goods and services produced while prices remain constant. C) both prices and quantities of goods and services increase. D) all of the above.

The demand schedule or curve confronted by the individual, purely competitive firm is:

A. relatively elastic, that is, the elasticity coefficient is greater than unity. B. perfectly elastic. C. relatively inelastic, that is, the elasticity coefficient is less than unity. D. perfectly inelastic.