Assume the price of gasoline doubles tonight and remains at that price for the next two years. Compared with the long-run price elasticity of demand for gasoline, the short-run price elasticity of demand for gasoline will be ________.
A. more variable
B. higher
C. lower
D. the same
Answer: C
You might also like to view...
In the short run, wages are assumed to be: a. constant
b. sticky. c. inflexible. d. all of the above are true.
(I) Differences in worker productivity are one major reason why individual earnings differ.
(II) Even if all workers were identical, differences in the desirability of jobs would still cause earnings differentials. a. I is true; II is false. b. Both I and II are false. c. Both I and II are true. d. I is false; II is true.
What might cause a demand curve to shift to the right?
A. An increase in the product's own price B. A decrease in the price of a substitute C. An increase in the price of a complement D. An increase in the price of a substitute
Another source of financing, in which an investor takes an ownership position in return for shares of stock in the company and the promises of capital gains, is called debt financing.
a. true b. false