Refer to the information provided in Figure 8.3 below to answer the question(s) that follow. 
Figure 8.3
Refer to Figure 8.3. If total fixed costs are $100, then average total cost of producing 10 basketballs is
A. $2.
B. $10.
C. $13.
D. $130.
Answer: C
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When the price of running shoes goes from $100 to $80, the quantity demanded increases from 20 to 30 million. Over this price range, the absolute value of the price elasticity of demand is
a. 0.55. b. 1. c. 1.25. d. 1.80. e. 2.50.
In Figure 12.6, airline Fly Smart is initially a secure monopoly between two cities X and Y at point M, serving 300 passengers per day at the profit maximizing price of $300 per ticket. What is Fly Smart's total profit as a secure monopoly?
A. $60,000 B. $40,000 C. $44,400 D. $33,600
Suppose a college increases the wages paid to student employees. Which of the following options is the best description of the most likely effect of the increase in wage earnings on the demand curve for school sweatshirts in the bookstore?
A) The demand curve shifts to the right. B) The demand curve shifts to the left. C) a leftward movement along the demand curve D) a rightward movement along the demand curve
Consider the market for ride-on lawn mowers and the recent increases in the price of oil. The recent increase in the price of oil makes it more expensive to manufacture ride-on lawn mowers. An increase in the price of oil also makes it more expensive to run a ride-on mower. What is likely to happen to equilibrium price and quantity of lawn mowers as a result in the changing price of oil? Supply and demand will both:
A. increase, increasing equilibrium price and having an indeterminate effect on quantity. B. increase, increasing equilibrium quantity and having an indeterminate effect on price. C. decrease, increasing equilibrium price and having an indeterminate effect on quantity. D. decrease, decreasing equilibrium quantity and having an indeterminate effect on price.