The short-run elasticity of supply is less than the long-run elasticity of supply
A) because consumers' tastes and preferences change in the long run but not in the short run.
B) because producers can adjust the amount of machinery in the long run but not in the short run.
C) only for durable goods.
D) only for non-durable goods.
B
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Assume that the demand curve for DVD players shifts to the left and the supply curve for DVD players shifts to the right, but the supply curve shifts more than the demand curve. As a result
A) both the equilibrium price and quantity of DVD players will decrease. B) the equilibrium price of DVD players will decrease; the equilibrium quantity may increase or decrease. C) the equilibrium price of DVD players may increase or decrease; the equilibrium quantity will increase. D) the equilibrium price of DVD players will decrease; the equilibrium quantity will increase.
When the government wants to give an exclusive right to one firm to produce a product, it
A) uses antitrust laws to keep other firms from entering the market. B) imposes a tariff on imports of the product. C) imposes a quota on imports of the product. D) grants a patent or copyright to an individual or firm.
Asset trades that deal with equity instruments are best described as
A) share of stock. B) exchange rate. C) bonds. D) bank deposits. E) factors.
How will a decrease in price tend to affect supply?
a. Supply will increase. b. Supply will decrease. c. Supply will not change. d. Uncertain.