Externalities can create a threat to environmental quality.

The price of lumber increased by 10 percent and the quantity supplied increased by 20 percent. The supply of lumber is

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

When the price level rises from 110 to 115, the aggregate level of GDP supplied rises from $80 billion to $120 billion. This ________ relationship represents the ________ relationship between the quantity of real GDP firms are willing to supply and the

price level. A) negative; short-run B) positive; short-run C) negative; long-run D) positive; long-run