As a consumer spends a larger share of his income on a particular good, the price elasticity of demand for that good:

When the economy is operating at an output rate less than full-employment capacity,

a. a strong demand for resources will cause resource prices to rise. b. actual unemployment will be less than the natural rate of unemployment. c. the rate of inflation will tend to rise. d. weak demand for investment will place downward pressure on real interest rates.

Since most colleges and universities charge the same tuition to every student regardless of what time students choose to take their classes,

A) the schools must develop some type of non-price rationing device. B) it follows that all classes will have a shortage of seats. C) it follows that all classes will have a surplus of seats. D) it follows that some classes will likely have a shortage of seats while other classes may have a surplus of seats. E) a and d