Over Longer Periods of Time, Increases in Oil Prices Provide

question 231

Multiple Choice

Over longer periods of time, increases in oil prices provide firms with incentives to explore and recover oil.What does this indicate about the long-run price elasticity of supply for oil?

• A)The elasticity coefficient is likely to be higher in the long run than in the short run.
• B)The elasticity coefficient is likely to be lower in the long run than in the short run.
• C)The elasticity coefficient approaches 0 in the long run as supplies are depleted.
• D)The elasticity coefficient is unstable in the long run because oil supplies may be depleted.

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Definitions:

Lateral Hypothalamus

An area of the brain that plays a significant role in regulating hunger and thirst.

Ventromedial Hypothalamus

A region of the brain involved in regulating hunger, satiety, and body weight.

Ghrelin

A hormone produced in the stomach that stimulates appetite and promotes food intake.

Ventromedial Hypothalamus

A region of the brain that plays a critical role in regulating satiety, metabolism, and body weight.