The demand for electricity is more elastic in the long run than in the short run because
A. consumers can shift to more efficient electrical appliances in the long run.
B. solar energy will eventually replace electricity in the long run.
C. government regulation of electricity producers is most effective in the long run.
D. more electricity can be produced in the long run.
Answer: A
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At the quantity of 200 bushels of apples, the marginal social benefit of a bushel of apples is $100 and the marginal social cost is $50. To produce the efficient quantity of apples
A) more apples should be produced. B) fewer apples should be produced. C) there should be no change in the amount of apples produced. D) More information on the willingness of consumers to purchase apples is needed to determine the efficient level of apples.
If a competitive firm has a U-shaped marginal cost curve then
A) the profit maximizing output will always generate positive economic profit. B) the profit maximizing output will always generate positive producer surplus. C) the profit maximizing output is found where MC = MR and MC is decreasing. D) the profit maximizing output is found where MC = MR and MC is constant. E) the profit maximizing output is found where MC = MR and MC is increasing.
Which of the following is not a leading economic indicator?
a. Prices of common stock b. Number of new businesses formed c. Unemployment rate d. New orders for plants and equipment
The interest rate:
A. is expressed as a percentage per dollar borrowed and per unit of time. B. exists only because lending is risky. C. tells us how much less money is worth today than in the future. D. All of these statements are true.