The longer the time period considered, the price elasticity of demand tends to:
a. decrease
b. remain constant.
c. increase.
d. converge to zero.
c
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If firms and workers have adaptive expectations, what impact will expansionary monetary policy have on inflation, unemployment, and the Phillips curve?
What will be an ideal response?
Two antitrust acts actively used by the U.S. government to prevent monopoly power in markets are the ______________ and the ___________________.
A. Sherman Antitrust Act; Clayton Act B. Bergman Antitrust Act; Clayton Act C. Sherman Antitrust Act; Stapleton Act D. Bergman Antitrust Act; Stapleton Act
If the consumer price index (CPI) in Year 1 was 200 and the CPI in Year 2 was 215, the rate of inflation was:
a. 15 percent. b. 7.5 percent. c. 5 percent. d. 215 percent.
When external scale economies exist in an industry, which of the following groups is most likely to be left worse off after the opening of free trade?
A. Consumers in the importing country B. Consumers in the exporting country C. Producers in the importing country D. Producers in the exporting country