The function of the interest rate in the Classical model was to keep the economy at full employment equilibrium by assuring that

If the price elasticity of supply for a good is 10, then supply is

A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.

If a monopolist wishes to increase its output and quantity sold

A) it must reduce its price, so its marginal revenue is greater than its price. B) it must reduce its price, so its marginal revenue is less than its price. C) it must raise its price, so its marginal revenue is greater than its price. D) it must raise its price, so its marginal revenue is less than its price.