The demand curve for petroleum should be
A) more elastic in the long run than in the short run.
B) less elastic in the long run than in the short run.
C) as elastic in the long run as it is in the short run.
D) more or less elastic in the long run versus the short run depending upon supply conditions.
A
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If the interest rate on student loans ________, students will ________
A) falls from 6 percent to 1 percent; not change their saving but will change their investment B) rises from 6 percent to 12 percent; increase their consumption before it becomes too expensive C) rises from 6 percent to 12 percent; increase their saving in order to pay back the loan sooner D) falls from 6 percent to 1 percent; increase their saving in order to pay back the loan sooner E) None of the above answers is correct.
The above figure shows the apartment rental market in Bigtown. If severe flooding resulted in the destruction of many of the city's apartment buildings, then the
A) supply curve of apartments would shift leftward and rent would rise above $750.00. B) demand curve for apartments would shift rightward and rent would rise above $750.00. C) equilibrium quantity of apartments rented would increase beyond 3,000. D) equilibrium market price of apartments rented would fall below $750.00.
When labor supply increases,
a. the marginal productivity of workers always increases. b. profit-maximizing firms reduce employment. c. wages increase as long as labor supply is upward sloping. d. wages decrease as long as labor demand is downward sloping.
Demand-pull inflation is associated with a(n):
a. Decrease in aggregate supply b. Increase in aggregate supply c. Increase in aggregate demand d. Decrease in aggregate deman