1. The demand curve for petroleum should be A. more or less elastic in the long
ID: 1201983 • Letter: 1
Question
1.
The demand curve for petroleum should be
A. more or less elastic in the long run versus the short run depending upon supply conditions.
B. more 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. less elastic in the long run than in the short run.
2.
Changes in technology over time will result in
A. a more elastic supply curve.
B. no change in the elasticity of supply.
C. a more inelastic supply curve.
D. a unitary elastic supply curve.
A. more or less elastic in the long run versus the short run depending upon supply conditions.
B. more 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. less elastic in the long run than in the short run.
2.
Changes in technology over time will result in
A. a more elastic supply curve.
B. no change in the elasticity of supply.
C. a more inelastic supply curve.
D. a unitary elastic supply curve.
Explanation / Answer
1. Option B is correct.
Petroleum is considered an important fuel in most of the production processes. So in the short run it has an inelastic demand. But over a period of time, in the long run, the firms develop some altenatives to it, making the demand elastic in the long run.
2. Option A is correct.
Change in technology often reduces the price of the goods and services produced and increasing its supply, making it elastic.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.