Refer to Figure 5-4.What is the economically efficient output ...

[Tirant22]

Refer to Figure 5-4.What is the economically efficient output level?
 
  A) Q1 B) Q1 plus Q2 C) Q2 minus Q1 D) Q2

Question 2

Suppose that when the price per ream of recycled printer paper rises from 4 to 4.50, the quantity demanded falls from 800 to 600 reams per day.
 
  Using the midpoint formula, what is the price elasticity of demand (in absolute value) over this range?
  A) 0.003 B) 0.41 C) 2.43 D) 4

[chereeb]

Answer to Question 1

D

Answer to Question 2

C