Use the following graphs to answer the next question. Which of the above shows the correct relationship between demand and marginal revenue for a pure monopoly?

The demand for loanable funds curve is downward sloping because

a. as the interest rate falls business firms demand fewer loanable funds b. as the interest rate falls business firms demand more loanable funds c. as the interest rate rises business firms demand more loanable funds d. as the interest rate rises, the government demands more loanable funds e. as the interest rate rises, the government demands fewer loanable funds

Demand is said to be unit elastic if quantity demanded

a. changes by the same percent as the price. b. changes by a larger percent than the price. c. changes by a smaller percent than the price. d. does not respond to a change in price.