Suppose new drilling techniques increase the world oil supply. In the long run, output will _________ and the price level will _________.
Fill in the blank(s) with the appropriate word(s).
increase; decrease
You might also like to view...
The Chairman of the Federal Open Market Committee is also
A) the president of the Federal Reserve Bank of New York. B) the chairman of the Securities and Exchange Commission. C) the chairman of the Federal Deposit Insurance Corporation. D) the chairman of the Board of Governors.
A perfectly elastic supply curve is expressed graphically as a(n):
a. downward sloping line or curve. b. upward sloping line or curve. c. vertical line. d. horizontal line.
As we move downward and to the right along a linear, downward-sloping demand curve,
a. both slope and elasticity remain constant. b. slope changes but elasticity remains constant. c. both slope and elasticity change. d. slope remains constant but elasticity changes.
The price elasticity of demand measures the responsiveness of:
A. firms to changes in demand. B. demand to a change in price of a substitute good. C. demand to a change in price. D. quantity demanded to a change in price.