Price elasticity of demand tends to be larger in the long run than in the short run. Which of the following is consistent with the reason why?
a. Because people see fewer and fewer substitutes for the good in the long run.
b. Because if price rises, over time producers will be able to offer more substitutes.
c. Because over time the good will become a smaller and smaller share of peoples' budget.
d. Because over time people's incomes rise.
b
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The production function graphs the relationship between
A) nominal GDP and real GDP. B) real GDP and the quantity of labor employed. C) real GDP and capital. D) nominal GDP and the quantity of labor employed. E) real GDP and the supply of labor.
If Isabella buys two goods and the prices of both goods decrease by 50%
A) the budget constraint will be unchanged. B) the slope of the budget constraint will increase. C) the slope of the budget constraint will decrease. D) the budget constraint will shift outward in a parallel fashion.
Which statement is false?
A. Crime and drugs are central to the ghetto culture. B. Ghetto residents are more likely to be street crime victims than middle class people. C. A basic way to reduce crime would be to alleviate poverty. D. None of these statements are false.
How much is the percentage of income received by the lowest quintile on line R?
