At a price of 20, Daphne sells 35 hand-painted dog collars per ...

[lb_gilbert]

At a price of 20, Daphne sells 35 hand-painted dog collars per week. When she raised her price to 25, she sold 28 per week. Based on this information, the demand for her dog collars is
 
  A) perfectly elastic. B) inelastic. C) elastic. D) unit elastic.

Question 2

Aggregate supply increases when ________.
 
  A. the price level rises
  B. the money wage rate falls
  C. consumption increases
  D. the money price of oil increases

[dajones82]

Answer to Question 1

D

Answer to Question 2

B A fall in the money wage rate increases aggregate supply and shifts the AS curve rightward.

[lb_gilbert]

Thanks for the timely response, appreciate it

[ricroger]

Excellent