Business executives who think the demand for their product is ...

[tiara099]

Business executives who think the demand for their product is very elastic at the current price are assuming
 
  A) the demand will become less elastic at a higher price.
  B) they will be able to sell more units at a higher price.
  C) they will sell fewer units but receive more dollars in sales revenue at a higher price.
  D) they will sell more units and receive more dollars in sales revenue at a lower price.
  E) they will sell more units but receive fewer dollars in sales revenue at a lower price.

Question 2

The figure above represents the relationship between output and cost in an industry with an external cost. Which line represents the marginal private cost (MC) curve?
 
  A) Curve 1
  B) Curve 2
  C) the dotted line BC
  D) the y-axis
  E) the dotted line AB

[Jsherida]

Answer to Question 1

D

Answer to Question 2

B