Explain the time dimension as it relates to elasticity. Be sure to include in your answer the difference in elasticity between the short run and the long run
What will be an ideal response?
In the short run consumers often don't have as many choices available to them when prices change. Therefore demand for most goods tends to be inelastic in the short run or at least less elastic then they would otherwise be with the passage of time. In the longer run, demand is likely to become more elastic, or responsive, simply because households make adjustments over time and producers develop substitute goods.
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If the short-run aggregate supply curve is shifting down repeatedly, it is rather likely that ________
A) output is declining repeatedly, relative to potential output B) the long-run aggregate supply curve is shifting to the left C) negative price shocks are recurring D) all of the above E) none of the above
If the price of a good is initially below the equilibrium level
A) the supply curve will shift leftward. B) the supply curve will shift rightward. C) firms supply none of the good. D) excess demand exists.
The least affordable places to live tend to be located disproportionately in
A. Michigan. B. California. C. Ohio. D. Iowa.
The effects of the national health care program on labor markets will
A) increase the quantity supplied of labor.
B) decrease the quantity supplied of labor.
C) increase the quantity demanded for labor.
D) decrease the quantity demanded for labor.