In general, price controls have a:
A. smaller effect in the short run because demand and supply become less elastic over time.
B. smaller effect in the long run since demand and supply become less elastic over time.
C. larger effect in the short run since demand and supply become more elastic over time.
D. larger effect in the long run because demand and supply become more elastic over time.
Answer: D
You might also like to view...
Hank goes to a Korean restaurant for the first time and he has no prior knowledge of Korean. He orders the Daenjang Chigae prepared medium hot and hopes for the best. Here an information __________ is __________ a market outcome.
A. symmetry; affecting B. symmetry; not affecting C. asymmetry; affecting D. asymmetry; not affecting
From 1945 until 1973, the U.S. economy experienced ________
A) rapid inflation B) no major recessions or depressions C) minimal interaction with the global economy D) all of the above E) none of the above
A discount shoe manufacturer's advertisement suggests that they are almost as good as the name brands but better value. The shoe manufacturer believes that the advertisement will make
a. The demand for its product less elastic b. His customers less price sensitive c. Him able to raise prices d. None of the above
An increase in the market price of a good increases consumer surplus
a. True b. False Indicate whether the statement is true or false