A recent study found that the price elasticity of demand for apples is -0.4. This year's early freeze in major apple growing regions has led to a 6% decrease in the apple production (supply) compared to last year. What is the implied change in price expected this year for apples (and assume no apple exports or changes in stocks)?
a. Decrease by 3%
b. Decrease by 15%
c. Decrease by 24%
d. Increase by 15%
e. Increase by 24%
d. Increase by 15%
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In Figure 10-5 above, suppose that the level of government expenditures increases. This causes a movement of the steady-state point such as from points
A) A to B. B) D to B. C) D to C. D) A to C. E) A to D.
In general, supply curves slope upward because:
a. increases in the price of a good result in lower opportunity costs. b. rising prices provide producers with a greater profit incentive. c. consumers buy a greater quantity. d. technology improves the ability of firms to produce more at each possible price.
Refer to the information provided in Figure 9.1 below to answer the question(s) that follow. 
Figure 9.1Refer to Figure 9.1. If this farmer maximizes profits, his per-bushel profit will be
A. $2. B. $4. C. $9. D. $15.
Firms in imperfectly competitive markets are
A. more efficient than firms in perfectly competitive industries. B. price makers. C. completely inefficient. D. price takers.