Private spending on tools, plant, and equipment used to produce future output

When modern economists cannot solve a model analytically, they can estimate the solution by:

A. using induction to solve a series of equations. B. abandoning models altogether. C. changing from the inductive back to the deductive approach. D. simulating the model with a computer to arrive at a numerical solution.

The price elasticity of supply is ________ elastic over time because ________.

A. more; producers get accustomed to the price changes B. less; the ideal number of firms have time to move into or out of the industry C. more; producers have a longer time to adjust their production decisions D. less; producers get accustomed to the price changes