Alternative fuels become more economically viable as:
A. the demand for oil decreases.
B. subsidies for alternative fuels are removed.
C. oil exploration and drilling technology improve.
D. the price of oil rises.
Answer: D
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When real interest rates are higher in country A than country B, there will tend to be a capital flow from country B to country A
a. True b. False Indicate whether the statement is true or false
Which of the following describes Ralph?
Ralph loves to watch public television but never sends any money to support the local station. a. He is a free rider getting benefits without paying any costs. b. He has a positive externality from television watching. c. He has a negative externality from television watching. d. He is a free rider paying costs without receiving any benefits.
A parallel or black market often arises as a result of which of the following?
A. High domestic interest rates B. Exchange controls C. Floating exchange rate regime D. Official intervention
Assume that when the price of cantaloupes is $2.50 the demand for cantaloupes is unit-elastic, and that the demand curve for cantaloupes is linear and downward sloping. If firms lower the price of cantaloupes to $2.00 which of the following statements
can be made regarding the price elasticity of demand for cantaloupes? A) The demand for cantaloupes at $2.00 must be inelastic. B) We cannot determine whether the demand for cantaloupes is elastic or inelastic without knowing what the quantity demanded is at each price. C) The demand for cantaloupes at $2.00 must be elastic. D) The demand for cantaloupes at $2.00 must be unit elastic.