Author Question: If OPEC increases its price of oil, and still the demand for oil decreases by a very small amount, ... (Read 73 times)

bio_gurl · **on:** Jul 1, 2018

If OPEC increases its price of oil, and still the demand for oil decreases by a very small amount, we can conclude that the demand for oil is

A) relatively elastic.
B) relatively inelastic.
C) perfectly elastic.
D) perfectly inelastic.

Question 2

Joey's Lawncutting Service rents office space from Joey's dad for 300 per month. Joey's dad is thinking of increasing the rent to 400 per month. As a result Joey's marginal cost of cutting grass will

A) increase by 100 divided by the amount of grass cut.
B) increase by 100.
C) decrease by 100.
D) not change.