In the short run, the quantity of available hotel rooms is not particularly responsive to changes in price because hotels take time to build and to destroy. This implies that the short-run supply of hotel rooms is
A. in equilibrium.
B. inelastic.
C. elastic.
D. greater than demand.
Answer: B
You might also like to view...
The production possibilities curve for the nation of Economagic shifts to the left. This could have been caused by:
a. an increase in Economagic's labor supply. b. innovation in the production of goods in Economagic. c. a war that destroyed some of Economagic's resource base. d. unemployment among Economagic's workers. e. Economagic's choice of more consumption and less capital last period.
A devaluation of a currency means that the exchange rate (price of that currency) has changed to a lower fixed rate
a. True b. False
If a firm is earning short-run economic profits shown in the above figure, in the long run
A. firms enter the industry, the market supply curve shifts rightward, and the market price rises. B. firms exit the industry, the market supply curve shifts leftward, and the market price falls. C. firms enter the industry, the market supply curve shifts rightward, and the market price falls. D. firms exit the industry, the market supply curve shifts rightward, and the market price falls.
The primary gain from international trade is:
A. increased employment in the domestic export sector. B. more goods than would be attainable through domestic production alone. C. tariff revenue. D. increased employment in the domestic import sector.