The Demand Curve for Petroleum Should Be

question 316

Multiple Choice

The demand curve for petroleum should be

• A) more elastic in the long run than in the short run.
• B) less elastic in the long run than in the short run.
• C) as elastic in the long run as it is in the short run.
• D) more or less elastic in the long run versus the short run depending upon supply conditions.

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Definitions:

Net Cash Flows

The difference between a company's cash inflows and outflows within a specific period.

Decrease in Accounts Receivable

A reduction in the amount of money owed to a business by its customers for goods or services delivered on credit.

Non-Operating Gains

Income from activities not related to a company's core operations such as profits from investments, property sales, or currency exchange.

Retirement of Notes Payable

The process of paying off or settling a debt obligation represented by promissory notes.