Suppose That at the Competitive Equilibrium,the Elasticity of Demand Is

question 57

Multiple Choice

Suppose that at the competitive equilibrium,the elasticity of demand is 1.50.If the price under monopoly is 10 percent higher than under perfect competition,assuming identical cost curves,it can be concluded that the monopoly output is _____ percent below the competitive output.

• A)67
• B)1.5
• C)15
• D)0.67

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Definitions:

Narcolepsy

A neurological disorder that affects the control of sleep and wakefulness, characterized by excessive daytime sleepiness and sudden sleep attacks.

Cataplexy

A sudden and temporary loss of muscle tone often triggered by strong emotions, associated with narcolepsy.

Sleepiness

A state of feeling drowsy or tired, often leading to a need or desire to sleep.

Hypocretin

A neurotransmitter involved in the regulation of arousal, wakefulness, and appetite.