If the short-run price elasticity of demand for hospital care is .27, then the long-run price elasticity is expected to be:
A. greater than .27.
B. perfectly inelastic.
C. less than .27.
D. equal to .27.
Answer: A
You might also like to view...
Which of the following statements best describes excess demand, or shortage?
a. The area between the supply and demand curves above the equilibrium point is called excess supply, or surplus. b. The area between the supply and demand curves below the equilibrium point is called excess supply, or surplus. c. The area between the supply and demand curves to the right of the equilibrium point is called excess supply, or surplus. d. The area between the supply and demand curves to the left of the equilibrium point is called excess supply, or surplus.
An increase in the real interest rate in the United States changes the quantity of loanable funds demanded because
a. U.S. residents will want to buy more foreign assets. b. Foreign residents will want to buy more U.S. goods and services. c. U.S. firms will want to purchase fewer U.S. capital goods. d. All of the above are correct.
For a linear demand function, Q = a + bP +cM + dPR , the income elasticity is
A. -c. B. c. C. c(M/Q). D. c(Q/M). E. -c(Q/PR).
The stock of capital ________ with any gross investment and ________ with any depreciation.
A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases