11) What information is given by the price elasticity of supply of popcorn? Choose 1 a) How responsive sellers of popcorn are to changes in the price of popcorn
b) How responsive popcorn buyers are to changes in income
c) How responsive buyers of popcorn are to changes in the price of popcorn
d) How responsive popcorn buyers are to changes in the price of popcorn seasonings
e) How responsive popcorn sellers are to changes in the price of unpopped corn kernels [0,2 point] A B C
12) All else equal, what is the value of the relative price elasticity of supply of raspberries over two days or two years? Choose 1
a) relatively inelastic in two days; relatively inelastic in two years
b) relatively elastic in two days; relatively inelastic in two years
c) relatively more elastic in two days than in 2 years
d) relatively more inelastic in two years than in two days
e) relatively inelastic in two days; relatively elastic in two years

1. consider a two-firm industry. firm 1 (the incumbent) chooses a level of output qı. firm 2 (the potential entrant) observes qı and then chooses its level of output q2. the demand for the product is p 100 q, where q is the total output sold by the two firms which equals qi +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of qi and q2 keeping in mind that firm 1 chooses qi first and firm 2 observes qi and chooses its q2. find the profits of the two firms-n1 and t2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of qi would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of qi? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f> 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q, denoted by q1', a expression for firm l's profit, when entry is deterred, as a function of f. for what values of f would firm 1 use an entry deterring strategy?