Demand is more inelastic in the long run.
Answer the following statement true (T) or false (F)
False
Demand is actually more elastic in the long run when consumers have time to switch to substitute goods. For example, you may own a gas-guzzling car now, and if the price of gasoline rises, you are stuck paying the higher price. In the longer run, if gas prices stay high, you may switch to a hybrid or electric car so you do not have to pay for so much expensive gasoline.
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The outcome of regulating a natural monopoly using the marginal cost pricing rule is
A) that the firm makes a normal profit. B) that the firm maximizes its profit. C) that consumer surplus is less than what it would be if the firm maximized its profit. D) an efficient level of production. E) that the firm makes an economic profit.
The members of NAFTA include
A. only the United States and Mexico. B. only the United States and Canada. C. only Mexico and Canada. D. the United States, Canada, and Mexico.
"Household production" refers to
A) the manufacturing of durable household products. B) the home building sector of the economy. C) home-based craft businesses. D) goods and services people produce for themselves.
Discounted tickets for children into events is what type of price discrimination?
A. First-degree price discrimination. B. Second-degree price discrimination. C. Third-degree price discrimination. D. It is not price discrimination.