We would expect the cross elasticity between tennis racquets and tennis balls to be:

At higher rates of interest

A) businesses demand more investment because there are more funds available to invest. B) businesses demand more investment because future profitability is likely to be greater. C) households save more because they get a greater return on their savings. D) households save less because it is more expensive to save.

Why does the supply curve for a commodity tend to be more elastic in the long run than in the short run?

A. Farmers can adjust their labor inputs in the long run. B. All inputs are variable in the long run. C. Firms can adjust their quality in the long run. D. None of the above.