As people have more time to adjust to a price change,
a. demand becomes more elastic, and supply becomes less elastic.
b. demand becomes less elastic, and supply becomes more elastic.
c. both supply and demand become less elastic.
d. both supply and demand become more elastic.
e. elasticity of both demand and supply tends toward unity.
D
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In the copycat game, there
a. is one Nash equilibrium. b. are two Nash equilibria. c. all the outcomes are Nash equilibria. d. no matter what Ditto chooses, Dot would prefer the other activity.
If purchasing-power parity holds, then the value of the
a. real exchange rate is equal to one.
b. nominal exchange rate is equal to one.
c. real exchange rate is equal to the nominal exchange rate.
d. real exchange rate is equal to the difference in inflation rates between the two countries.
A perfectly competitive firm has a total revenue curve that is
A) upward sloping with an increasing slope. B) downward sloping with a constant slope. C) upward sloping with a decreasing slope. D) upward sloping with a constant slope.
"The income elasticity of a good is positive if a consumer increases the total spending on that good as a result of an increase in its market price." Do you agree or disagree? Why?
What will be an ideal response?