Consider an industry that is in long-run equilibrium. An increase in demand leads to a decrease in the price of the good. We know that this is
A) a decreasing cost industry.
B) a constant cost industry.
C) an increasing cost industry.
D) not a competitive industry.
A
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When monetary equilibrium occurs,
A) the demand for final goods and services equals the supply of final goods and services. B) gross business investment falls to zero. C) relative prices remain constant. D) the quantity supplied of money equals the quantity demanded.
Shifts in the supply of oil have caused large changes in price since the 1970s because
A) both the supply of oil and the demand for oil are inelastic over short periods of time. B) the supply of oil and the demand for oil are perfectly elastic over short periods of time. C) the supply of oil is very inelastic while the demand for oil is very elastic over short periods of time. D) the supply of oil is very elastic while the demand for oil is inelastic over short periods of time.