If the price of steel increases drastically, the quantity of steel demanded by the building industry will fall significantly over the long run because
A) buyers of steel are more sensitive to a price change if they have more time to adjust to the price change.
B) buyers of steel are less sensitive to a price change if they have more time to adjust to the price change.
C) sales revenue in the building industry will fall sharply.
D) profits will fall by a greater amount in the long run than in the short run.
Answer: A
You might also like to view...
Payoffs are:
A. the rewards that come from particular actions. B. always monetary. C. things that are only enjoyed by the winner. D. bribes made to gain some advantage unfairly during a game.
T-accounts reflects double-entry bookkeeping that keeps income and production equal.
Answer the following statement true (T) or false (F)
In the short run, if the price level increases, then nominal wages:
A. Stay fixed, therefore firms' revenues and profits will increase B. Stay fixed, and the firms' revenues and profits also stay the same C. Increase, causing firms' revenues and profits to fall D. Decrease, causing firms' revenues and profits to rise
Economists are generally in support of:
A) government restrictions on trade. B) free international trade. C) tariffs to restrict trade. D) subsidizing exports.