The rising price of oil has made it feasible to extract oil out of oily sand in Canada. Concerning the oil market, this is an example of
A) a higher price elasticity of supply in the long run.
B) a higher price elasticity of supply in the short run.
C) a higher price elasticity of demand in the short run.
D) an inelastic long-run supply of oil.
A
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In the above figure, at the best affordable point, the marginal rate of substitution is
A) 0.5 of a hamburger per magazine. B) 1 hamburger per magazine. C) 1.33 hamburgers per magazine. D) 8 hamburgers per magazine.
Over the past 10 years, the average growth rate in real GDP has been 2 to 3 times greater in India than in the United States. What does this indicate about the difference in the level of income in India and the United States over the past 10 years
What will be an ideal response?
When economists describe a production process as capital-intensive, they mean that the
A. Process uses a high ratio of machinery and other capital to labor. B. Process needs a greater emphasis on labor in order to increase productivity. C. Capital used in the process tends to wear out (depreciate) very rapidly. D. Capital used in the process reflects the most advanced technology.
The free-rider problem implies that:
A. each person will pay the full cost of the public good. B. nobody wants the public good. C. everybody will pay a portion of the cost of the public good. D. each person will try to benefit from the public good without paying for it.