If the price elasticity of demand (Ep) equals one in the short run, then, other things being equal, in the long run Ep will be
A) one.
B) less than one.
C) greater than one.
D) indeterminate without more information.
C
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A country reports a potential GDP of $6 trillion, a natural unemployment rate of 4 percent and an expected inflation rate of 2 percent. Using Okun's Law, if the unemployment rate is 5 percent, what is real GDP?
What will be an ideal response?
Long-run cost functions are estimated using
A) time-series regression analysis. B) cross-sectional regression analysis. C) cost accounting data. D) None of the above
Consumer surplus
a. is the difference between total willingness to pay and the total amount actually paid. b. guarantees that the market value of a good in money is equal to the total economic value of the good. c. is always negative because of diminishing marginal utility. d. is the total area under a consumer's demand curve.
Which of the following earns little or no interest?
a. a stock b. money c. Treasury bill d. CD