The supply of cars will be more elastic
A. the lower the quantity demanded.
B. the greater the quantity demanded.
C. in the short run than in the long run.
D. in the long run than in the short run.
Answer: D
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Suppose the demand curve for a product is downward sloping and the supply curve is upward sloping. If a unit tax is imposed in the market for this product
A) the tax burden will be shared among the government, buyers and sellers. B) buyers bear the entire burden of the tax. C) the tax burden will be shared by buyers and sellers. D) sellers bear the entire burden of the tax.
The policies of the U.S. Federal Reserve probably helped to cause ________
A) the long contraction of the 1870s B) the severe recession of the 1890s C) the recession in 1918-1919 D) all of the above E) none of the above
The occurrence of the Great Depression offered evidence that supported
a. the classical theory of economics b. the need for the government to practice the policy of laissez faire c. the need for the government to control prices d. Congress to take action to stop rising prices e. the Keynesian idea that the government needed to guide the economy
According to the Keynesian transmission mechanism, if the Fed conducts an open market sale of government securities, it may cause which of the following in the investment goods market?
A) a rightward shift in the investment demand curve B) a leftward shift in the investment demand curve C) a movement down and along a given investment demand curve D) a movement up and along a given investment demand curve