Longer time frames generally result in less elastic supply
a. True
b. False
Indicate whether the statement is true or false
False
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Reasons why a corporation could choose to produce in another country include all of the following except
a. lower labor costs b. avoid overseas transportation costs c. limited liability d. circumvent tariffs e. lower resource costs
Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good. The income elasticity of demand for the good is
a. negative, and the good is an inferior good. b. negative, and the good is a normal good. c. positive, and the good is an inferior good. d. positive, and the good is a normal good.
Which statement is false?
A. Our 2009 trade deficit with Japan was the highest deficit ever recorded with any one country. B. Our trading position with Japan is very much like a colony and a colonial power. C. Japan had an economic revival in the 1950s and 1960s largely by targeting the American consumer market. D. If we eliminated our trade deficits with Japan and China, we would still be running a trade deficit.
In the long run, the supply curve
A) is more elastic than it is in the short run. B) is less elastic than it is in the short run. C) exhibits no systematic sequence of changes in elasticity. D) exhibits no change in elasticity at all.