An economic system that answers the What, How, and For Whom questions using prices determined by the interaction of the forces of supply and demand is a:

An indirect tax is exemplified by

A) an income tax. B) a sales tax. C) a subsidy. D) None of the above answers is correct.

Bringing oil to the market is a relatively long and costly process. The whole process from exploration to pumping significant amounts of oil can take years. What does this indicate about the price elasticity of supply for oil?

A) The elasticity coefficient is likely to be very high and supply is inelastic. B) The elasticity coefficient is likely to be low and supply is highly inelastic. C) The elasticity coefficient is likely to be low and supply is highly elastic. D) The elasticity coefficient is likely to be close to zero and supply is perfectly elastic.