The quantity of new cars increases by 10 percent. If the price ...

[MirandaLo]

The quantity of new cars increases by 10 percent. If the price elasticity of demand for new cars is 1.25, the price of new cars will fall by
 
  A) 2.5 percent.
  B) 8 percent.
  C) 10 percent.
  D) 12.5 percent.

Question 2

The existence of economies of scale can create ________.
 
  A) a natural monopoly
  B) a government monopoly
  C) a legal monopoly
  D) a market in which many firms make identical products

[kswal303]

Answer to Question 1

B

Answer to Question 2

A

[MirandaLo]

Thanks for the timely response, appreciate it

[sarah_brady415]

YES! Correct, THANKS for helping me on my review