Refer to the figure above. The relative price of T (in terms of S) is

Sue's Surfboards is the sole renter of surfboards on Big Wave Island. If marginal revenue is positive at the number of surfboard rentals made each hour, then Sue's Surfboards

A) must face an elastic demand for surfboard rentals. B) must face an inelastic demand for surfboard rentals. C) can increase its total revenue by increasing the price of rentals. D) must face a unit elastic demand for surfboard rentals.

Crowding out will be more pronounced the closer to vertical is the

A) IS curve. B) LM curve. C) consumption function. D) aggregate demand function.