Suppose that total expenditures for coffee reach a maximum at a price of $5 per pound. At this price, the demand for coffee is:
A. elastic.
B. inelastic.
C. perfectly inelastic.
D. unit elastic.
Answer: D
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Use the figure below, and the regular percentage change formula, to answer the following question: 
Assume that price decreases from $10 to $2. The price elasticity of supply is about
A. 0.35 and supply is inelastic. B. 1 and supply is unit-elastic C. 4 and supply is elastic. D. 1.25 and supply is elastic.
If the market demand curve has constant price elasticity of -1, the monopolist's price should approach infinity.
Answer the following statement true (T) or false (F)
The price level in the economy is a composite measure reflecting the:
a. rate of change in average prices for the wide range of services produced and consumed in one of the sectors of the economy relative to the price level expected the next year. b. average price of the wide range of goods and services produced and consumed in the economy relative to the price level in a base year. c. rate of change in the price of inputs used to produce the wide range of goods and services in the overall economy relative to the price level in a base year. d. government's cost of procuring resources to produce public goods and services relative to the price level in a base year.
Monetary policy is
A) the policy concerning changes in the money supply that is pursued to achieve particular macroeconomic goals. B) the expenditures and taxation policy that the government pursues to achieve particular macroeconomic goals. C) the investment policy that businesses pursue to achieve particular macroeconomic goals. D) the spending and saving policy that consumers pursue to achieve particular macroeconomic goals. E) the spending policy that the Treasury pursues to achieve particular macroeconomic goals.