Bringing oil to the market is a relatively long and costly process. The whole process from exploration to pumping significant amounts of oil can take years. What does this indicate about the price elasticity of supply for oil?
A) The elasticity coefficient is likely to be very high and supply is inelastic.
B) The elasticity coefficient is likely to be low and supply is highly inelastic.
C) The elasticity coefficient is likely to be low and supply is highly elastic.
D) The elasticity coefficient is likely to be close to zero and supply is perfectly elastic.
B
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A rival good is defined as a good for which there are substitutes
Indicate whether the statement is true or false
Currency consists of
A) only coins minted by the U.S. Treasury. B) only Federal Reserve notes. C) coins minted by the U.S. Treasury and Federal Reserve notes. D) coins, Federal Reserve Notes and traveler's checks.
Which of the following characteristics is NOT likely to increase the interest on a loan?
A) a high-risk proposal B) a non-creditworthy borrower C) a short-term loan D) a larger dollar loan
Which of the following best illustrates the application of the model-building process to economics?
a. A labor economist notices that unemployment tends to be higher among teenagers than more experienced workers, develops a model, and gathers data to test the hypotheses in the model. b. Two economists with differing political agendas argue about the best way to solve the Social Security problem on a Sunday morning talk show. c. Economists come to believe that some economic models are true simply because prominent leading economists say they are true. d. A Ph.D. student in economics develops a plausible mathematical model of an industry for his dissertation, but there is no data to test the model.