During recessions, the value of collateral decreases and corporate profits decrease, so firms do not have cash to finance new investment projects. Therefore, credit rationing depends on the state of the economy. This situation is known as the

When the price of gasoline is $2.20 per gallon, 11 million gallons are demanded, and when the price of gasoline goes up to $2.60 per gallon, 10 million gallons are demanded. The gasoline in this range has a(n)

A) elastic demand. B) inelastic demand. C) unit elastic demand. D) perfectly elastic demand.

A fall in the price of a competing product will produce an outward shift in the demand curve for most products

a. True b. False Indicate whether the statement is true or false