Suppose the price of natural gas, a typical fuel for heating homes, rises in January in Alaska. Would you expect the price elasticity of demand for natural gas to more inelastic immediately after the price increase or at some point in the future?
The price elasticity of demand would be more inelastic immediately after the price increase.
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Before the 1970s, bankers were happy with interest-rate ceilings because those ceilings: a. reduced interest-rate competition for deposits among banks. b. guaranteed them high profits
c. guaranteed them a minimum profit. d. enabled them to expand into other lines of commerce. e. allowed them to hold corporate stock.
Analysis indicates that the economy is in a recessionary gap. Which of the following is the least appropriate policy mix in this situation?
a. a budget surplus and expansionary monetary policy b. a budget deficit and expansionary monetary policy c. a budget deficit and contractionary monetary policy d. a budget surplus and contractionary monetary policy
During George W. Bush's presidency
A. the job market was quite robust. B. The United States' federal budget deficit hit a record high. C. the federal budget surpluses in the last years of the Clinton presidency continued. D. we experienced a very high inflation rate.
Carefully explain how, and under what conditions, an increase in foreign markets available to the United States computer producers would lead to an increase in economic well-being for consumers of computers in the United States.
What will be an ideal response?