In general, price controls have a:
A. larger effect in the long run because demand and supply become more elastic over time.
B. larger effect in the short run since demand and supply become more elastic over time.
C. smaller effect in the long run since demand and supply become less elastic over time.
D. smaller effect in the short run because demand and supply become less elastic over time.
A. larger effect in the long run because demand and supply become more elastic over time.
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If the demand for videotapes tends to be elastic, then a decrease in videotape prices means that people spend more on videotapes than before
Indicate whether the statement is true or false
Every government has its own set of policies to govern the economy such as:
A. labor standards. B. environmental regulations. C. safety policies. D. All of these are true.
Economic cost is always less than accounting cost.
Answer the following statement true (T) or false (F)
A rational person maximizes
A) risk. B) return. C) expected utility. D) return variance.