Measured in BTUs per dollar of real GDP, energy consumption fell by only 5 percent between 1970 and 1975, but had fallen by almost 30 percent by 1990 . These figures illustrate the fact that
a. energy demand does not respond to price changes in the short run.
b. energy demand does not respond to price changes in the long run.
c. energy demand is more elastic in the short run than in the long run.
d. energy demand is more elastic in the long run than in the short run.
d. energy demand is more elastic in the long run than in the short run.
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In the Keynesian money market, velocity is
a. negatively related to the interest rate. b. independent of the interest rate. c. positively related to the interest rate. d. is positively related to the money supply. e. is not related to the interest rate but income.
Suppose that quantity demand falls by 30% as a result of a 5% increase in price. The price elasticity of demand for this good is
a. inelastic and equal to 6. b. elastic and equal to 6. c. inelastic and equal to 0.17. d. elastic and equal to 0.17.