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Question 5 1 pts Electric power utility companies use various fuel sources (e.g., coal, natural gas, nuclear) to generate electricity for their customers. What happens to the demand for natural gas used to generate electricity as we move from a short-run planning horizon to a long-run planning horizon? Why? 0 Demand becomes more inelastic over time because the other fuel sources become more scarce, so there are fewer options available for electric power utilities in the long run. 0 Demand becomes more inelastic over time because all of the power generation plants tend to choose the same technology, which makes the industry less responsive to prices in the long run. 0 Demand becomes more elastic over time because the electric plant's technology becomes obsolete, and the power company has less exibility to adjust to changes. 0 Demand becomes more elastic over time because the power companies have more options available and can adopt new generating technologies or substitutes for natural gas over the long run. Question 6 1 pts In general, does the demand for labor become more or less elastic as we increase the number of other variable inputs used in a production process? 0 More elastic O No change in elasticity 0 Less elastic Q We cannot answer this question without more information about the other inputs. Question 7 1 pts In a competitive labor market, with one variable factor, the supply of labor to the rm is: 0 equal to the marginal expenditure curve. 0 equal to the demand curve for labor. 0 greater than the marginal expenditure curve. 0 equal to the marginal revenue product curve. Question 8 1 pts What happens to the marginal revenue product curve of a factor as more of a complementary factor is hired? Q It shifts to the left, because its marginal product decreases. Q It shifts to the left, because its marginal product increases. 0 It shifts to the right, because its marginal product decreases. Q It shifts to the right, because its marginal product increases