The supply curve for gasoline will be more elastic in:
A. the short run because of the principle of diminishing returns.
B. the long run because of the principle of diminishing returns.
C. the short run because firms have more time in which to respond to the price change.
D. the long run because firms have more time in which to respond to the price change.
Answer: D
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Other things constant, which of the following would tend to increase the demand for Toyota autos?
A) A fall in the price of Toyotas B) A fall in the price of Chryslers (a substitute for Toyotas) C) A rise in income, if Toyotas are a normal good D) A rise in income, if Toyotas are an inferior good
Official Development Assistance must be
a. provided by any agency registered with the United Nations b. provided for any government-related purpose c. provided for development purposes, regardless of the terms on which it is provided d. provided for development purposes and with concessional terms e. all of the above
If a perfectly competitive industry uses only a small share of the available inputs in a resource market, then the long-run market supply curve for the industry will most likely be: a. vertical
b. horizontal. c. upward sloping. d. downward sloping.
The existence of economic fluctuations makes it clear that
a. we should stimulate the economy with tax cuts b. recessions are caused by shifts in labor supply c. we should pass a balanced budget amendment to the U.S. Constitution d. we need active monetary regulation e. the classical model has a flaw