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1. A firm’s market power decreases if the price elasticity of demand for its product
A. stays the same over time.
B. decreases.
C. equals the income elasticity of demand.
D. increases. ?
2. The higher the price elasticity, the
A. more sensitive price changes are to quantity demanded.
B. less sensitive price changes are to quantity demanded.
C. more sensitive quantity demanded is to price changes.
D. less sensitive quantity demanded is to price changes.
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