Which statement is likely to be associated with inelastic supply? a) Consumers are willing to pay any price for the good. b) The time period under consideration is very long. c) The inputs necessary for production cannot readily be increased. d) The good is necessary for survival (e. g., a life-saving drug).

Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.