A factor of production that can be easily changed in the relevant ...

[bucstennis@aim.com]

A factor of production that can be easily changed in the relevant time period is called a
 
  A) fixed input.
  B) temporary input.
  C) variable input.
  D) substitution input.

Question 2

The government heavily subsidizes the production of ethanol to encourage the purchase of ethanol over oil, a less environmentally friendly form of energy. Given that the supply elasticity of ethanol, , is estimated to be about 0.
 
  13, what would the elasticity of demand, , have to be for consumers to receive at least half of the subsidy, and therefore encourage ethanol consumption? A)  must be less than .
  B)  must be greater than .
  C)  must be more inelastic than the elasticity of supply.
  D) Both A and C.

[zoeyesther]

Answer to Question 1

C

Answer to Question 2

D

[bucstennis@aim.com]

Excellent

[laurnthompson]

TYSM