Suppose the price elasticity of supply for minivans is 0.3 in the short run and 1.2 in the long run. If an increase in the demand for minivans causes the price of minivans to increase by 5%, then the quantity supplied of minivans will increase by about

Since 1995, federal regulations have

a. tightened mortgage lending standards and therefore made it difficult to obtain a loan to purchase a house. b. increased the down payment housing buyers are required to make in order to obtain a mortgage loan. c. loosened lending standards and made it possible for many buyers to purchase a house with little or no down payment. d. required investment banks to maintain more capital against their holdings of mortgage loans.

Alpha Corporation has a price of $5 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, and a dividend yield of 2 percent. It has a price-earnings ratio which is

a. high, perhaps indicating that people expect future earnings to rise. b. high, perhaps indicating that people expect future earnings to fall. c. low, perhaps indicating that people expect future earnings to rise. d. low, perhaps indicating that people expect future earnings to fall.