1. If both the supply of and the demand for a good are highly elastic, a shift of either curve will always result in
A. a decrease in price
B. an increase in price
C. a large change in quantity
D. no change
2. If the supply of rental housing increases causing the price to fall and apartment dwellers move into bigger apartments that cost the same as their old ones, we can infer that the
A. demand for apartments is elastic
B. demand for apartments is unit elastic
C. demand for apartments is inelastic
3. The elasticity of demand for oil is -0.5 and the elasticity of supply if 0.20. IF the demand for oil increase 10 percent what happens to the price of oil?
A. It increase by 14 percent
B. It decreases by 20 percent
C. It increases by 8 percent