The long-run price elasticity of demand for a good is usually larger than its short-run price elasticity because
a. as the saying goes, "out of sight, out of mind"
b. more goods are demanded in the long run than in the short run
c. people have more time to find substitute goods
d. incomes tend to rise over time
e. supply curves shift outward over time
C
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Who can determine the true cost of water?
A) Nobody B) Anybody who puts their mind to it C) Only the most competent hydrologist D) A good accountant
Suppose the United States reduced the tariff on digital camera, allowing foreign-produced cameras to more freely enter the U.S. market. Which of the following would most likely occur?
a. The price of cameras to U.S. consumers would increase, and the demand for U.S. export products would rise. b. The price of cameras to U.S. consumers would fall, and the demand for U.S. export products would fall. c. The price of cameras to U.S. consumers would increase, and the demand for U.S. export products would fall. d. The price of cameras to U.S. consumers would fall, and the demand for U.S. export products would rise.
Investment spending
A. cannot be stimulated by decreasing the interest rate. B. is often the cause of business fluctuations in the United States. C. is a remarkably stable function of the level of real GDP. D. is the primary solution to recessions and inflations, according to John Maynard Keynes.
If the price of K declines, the demand curve for the complementary product J will:
a. Remain unchanged b. Decrease c. Shift to the right d. Shift to the left