The shorter the time period that suppliers have to adjust to price changes, the
A. lower will be the price elasticity of supply.
B. higher will be the price elasticity of supply.
C. lower will be the price elasticity of demand.
D. higher will be the price elasticity of demand.
Answer: A
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The classical economists assumed that
A) wages and prices were inflexible, especially downward. B) government intervention in the economic system was necessary and helpful. C) monopoly was widespread in the economy. D) wages and prices were flexible.
The relationship between the level of income and investment spending is known as the consumption function
Indicate whether the statement is true or false
In the industrial period of U.S. history, the manufacturing goods consumed by U.S. households were subject to
(a) high taxes. (b) Engel's Law. (c) income effects. (d) none of the above.
Money facilitates trade because
a. it eliminates the need for specialization b. it prevents people from taking advantage of each other c. it serves as a medium of exchange d. division of labor allows money to be produced at a lower cost e. people do not benefit from barter unless money is used