In the village of Frankfurter, the demand function for sausages per person is D(p) = 20 - 1.5p, where p is the price of a single sausage. The present population of Frankfurter is 100 persons. Suppose that 10 more people move into the town, each of whom has the same demand function as the old residents. At a price of $2, the price elasticity of demand for sausages in Frankfurter is (a) increased by 10% (b) decreased by 10% (c) unchanged (d) increased by 15% (e) None of the above.
5. Corrected_text: Consider a group of people A, B, C and the relation "At least as tall as and strictly heavier than." Is this relation transitive? Is it reflexive? Is it complete? (a) Yes; No; Yes (b) No; Yes; Yes (c) Yes; Yes; No (d) No; No; Yes (e) Yes; No; No (f) None of the above.
6. Corrected_text: If a firm is producing where MP/w < MP2/w2, the firm can reduce costs but maintain the same output by increasing the use of factor 1 and decreasing the use of factor 2. True or False?