Which of the following explains why supply is more elastic as more time passes?
A) It is difficult or impossible to increase the quantity produced in a short period of time.
B) Consumers have more time to search for substitutes.
C) Sellers try to take advantage of a high price in the short term.
D) The supply curve becomes generally steeper as more time passes.
E) There is no explanation for this phenomenon.
A
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Central banks get the purchasing power to buy government securities by:
a. Increasing their liabilities in the form of deposits from banks. b. Reducing currency in circulation. c. Making discount loans to banks. d. Taking loans from the government. e. All of the above.
Mutual interdependence among firms in an oligopoly means that:
a. firms never form a cartel. b. it is difficult to know how firms will react to decisions of rivals. c. no formal agreement is possible among firms. d. firms never practice price leadership.
Society gains from a patent if the product would not otherwise be developed.
Answer the following statement true (T) or false (F)
A temporary adverse supply shock directly causes
A. a shift to the left of the FE line. B. a shift down and to the right of the LM curve. C. a shift down and to the left of the IS curve. D. a shift up and to the right of the IS curve.