If the percentage change in price is 10 per cent and demand is elastic, then the percentage change in the quantity demanded:

Select one:

A.is larger than 10 per cent.

B.equals 10 per cent.

C.equals 0 per cent.

D.is greater than 0 per cent but less than 10 per cent.

E.More information is needed to determine the magnitude of the change in the quantity demanded.

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then:

Select one:

A.the equilibrium price definitely remains the same.

B.the equilibrium price definitely rises.

C.the equilibrium price definitely falls.

D.more information is needed to determine the effect on the equilibrium price.

E.the equilibrium quantity definitely increases.

Moving from one point to another on a production possibilities frontier implies:

Select one:

A.holding the production levels of both goods constant.

B.increasing the production of both goods.

C.changing the prices of both goods.

D.increasing the production of one good and decreasing the production of another.

E.decreasing the production of both goods.

Which of the following statements is correct?

Select one:

A.Because a monopoly is the only firm in the market, its marginal revenue curve must be the same as the market demand curve.

B.Monopolies have perfectly inelastic demand for the product sold.

C.The market demand and the firm's demand are the same for a monopoly.

D.Monopolies are guaranteed to earn an economic profit.

E.Because a monopoly is the only firm in the market, its supply curve is the same as the market demand curve.

If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are:

Select one:

A.an inferior good.

B.a normal good.

C.made using advanced technology.

D.a substitute for camcorders.

E.a complement for camcorders.