Author Question: A factor of production that can be easily changed in the relevant time period is called a A) ... (Read 63 times)

bucstennis@aim.com · **on:** Jul 1, 2018

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.