If the supply for a good is elastic, that means that when price ...

[RYAN BANYAN]

If the supply for a good is elastic, that means that when price increases, the
 
  A) supply will increase.
  B) quantity supplied will decrease.
  C) quantity supplied will increase by a smaller percentage than the price increased.
  D) quantity supplied will increase by a greater percentage than the price increased.

Question 2

In the long-run, a firm in monopolistic competition produces an amount of output that sets
 
  A) P > ATC and MR = MC.
  B) P > ATC and MR > MC.
  C) P = ATC and MR = MC.
  D) P = ATC and MR > MC.

[Danny Ewald]

Answer to Question 1

D

Answer to Question 2

C