Suppose that the value of the long-run absolute elasticity of demand for a good is 1.2. Then, we know the short-run absolute price elasticity of demand will be

A) inelastic.
B) greater than 1.2.
C) elastic.
D) less than 1.2.


D

Economics

You might also like to view...

Comparative advantage means

A) the ability to produce a good or service at a lower opportunity cost than any other producer. B) the ability to produce a good or service at a higher opportunity cost than any other producer. C) compared to others you are better at producing a product. D) the ability to produce more of a product with the same amount of resources than any other producer.

Economics

Unemployment resulting from normal turnover in the labor market is called: a. frictional unemployment. b. cyclical unemployment

c. structural unemployment. d. seasonal unemployment.

Economics

If the required reserve ratio, m, is 20 percent, then the oversimplified money multiplier is

a. 10. b. 5. c. 4. d. 2.

Economics

Refer to the table below. At what consumption level for this product does diminishing marginal utility set in?



A. 4 units
B. 5 units
C. 8 units
D. 7 units

Economics