The more time consumers have to adjust to a change in price:
A. the smaller will be the price elasticity of demand.
B. the greater will be the price elasticity of demand.
C. the more likely the product is a normal good.
D. the more likely the product is an inferior good.
Answer: B
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If a bank receives an additional deposit of $50,000 and the desired reserve ratio is 20 percent, what is the amount of new loans the bank can make?
What will be an ideal response?
In the long run in monopolistic competition, firms
A) can earn an economic profit. B) incur an economic loss. C) can earn zero economic profit but not an economic profit. D) shut down if they are earning zero economic profit. E) earn either an economic profit or zero economic profit.
Which of the following African countries has experienced widespread death and destruction due to ethnic or clan based conflict in the previous decade?
a. Rwanda b. Sudan c. Somalia d. all of the above
The relationship between price and quantity supplied after firms fully adjust to any short-term economic profit or loss resulting from a change in demand is illustrated by the
a. long-run industry supply curve b. Dutch auction model c. short-run firm supply curve d. constant-cost industry supply curve e. short-run industry supply curve