The method of payment that a principal can use to elicit effort from an agent is called:

Lizzie's budget line is shown in the figure above. The relative price of a cookie is ________ per cookie

A) 2 magazines B) 0.5 of a magazine C) $1 D) $2

If price decreases and demand is ________ then total revenue will decline

a. perfectly elastic b. inelastic c. unit elastic d. elastic