The above figure shows the demand curve for movie rentals from Redbox. If Redbox raised its price from $2.50 to $3.00, between these two prices the price elasticity of demand equals

A perfectly competitive firm and a monopolistically competitive firm are similar in each of the following respects except

a. each has many buyers and sellers. b. firms sell homogeneous products in both markets. c. in having perfect information. d. for freedom of exit and entry.

The poverty trap refers to:

A. poorer countries having a harder time buying the things that will end their poverty. B. richer countries spiraling downward into poverty if they invest in the wrong industries. C. richer countries spiraling downward into poverty if they fail to invest enough in physical capital. D. All of these describe the poverty trap.