If Weiskamp T-shirt Co lowers its price from $6 to $5 and finds that students increase their quantity demanded from 400 to 600 T-shirts, then the demand for Weiskamp T- shirts within the $5 to $6 price range is

Luke was earning $60 per hour and working 40 hours per week. Luke's wage rose to $70 per hour, and as a result, he now works 50 hours per week

What can you conclude from this information about the substitution and income effects of a wage increase for Luke?

If firms are successful in product differentiation:

a. their demand will become relatively elastic. b. consumers will believe that the firms are producing more or less identical goods. c. they can raise their prices without losing all of their customers to rivals. d. they tend to face a horizontal demand curve. e. they gradually emerge as price takers.