1.)Demand increases for the product of a perfectly competitive market and demand increases for the product of a monopoly. How are the responses of the two markets different?

Select one:

a.Quantity supplied by each producer will be higher than before the increase in demand in the shot run in monopoly but not in perfect competition

b.Supply will increase in the long run in perfect competition but not in monopoly

c.Profits will increase in the short run in monopoly but not in perfect competition

d.Price will increase in the short run in perfect competition but not in monopoly.

2.) There are two ways to eat: 1)dining, which involves eating as the primary activity, such as a sit-down meal at home or in a restaurant; and 2)grazing, which is eating as a secondary activity to something else, such as watching TV or driving. Who is most likely to dine and who is most likely to graze,other things being equal?

Select one:

a.People who have inelastic demand for food are more likely to graze and people who have elastic demand for food are more likely to dine.

b.People who earn high wages are more likely to dine and people who earn low wages are more likely to graze.

c.People who earn high wages are more likely to graze and people who earn low wages are more likely to dine.

d.People who have inelastic demand for food are more likely to dine and people who have elastic demand for food are more likely to graze.