For a given, permanent reduction in demand for a product: a. the ...

[rl]

For a given, permanent reduction in demand for a product:
 a. the decrease in price will be greater the more elastic is supply.
 b. the decrease in price will be greater in the long run than in the short run.
  c. the decrease in price will be greater the more inelastic is supply.
 d. none of the above

Question 2

A contractionary policy can be thought of as:
 a. a decrease in the money supply
  b. an increase in the money supply
  c. an increase in the interest rate.
 d. either (a) or (c).

[peter]

Answer to Question 1

c

Answer to Question 2

d