1. The demand curve represents

a). the amount of a good a consumer buys

b). the amount of a good a consumer buys, given the quantity the seller is

willing to sell

c). the amount of a good a consumer is willing to buy, given prices

d). none of the above

2. Suppose consumers will always buy gasoline no matter how high the price that seller would charge. The gasoline market is:

a). perfectly Elastic

b). perfectly Inelastic

c). perfectly Linear

d). none of the above

3. Which of the following is true in the long-run?

a). A firm can vary only one of the inputs used in production.

b). A firm can vary all the inputs used in production.

c). The level of output produced cannot be varied.

d). In the long-run the marginal cost of production is zero.