The absolute value of the? short-run elasticity of demand for bread has been estimated to be 0.15. Its? long-run elasticity of demand is
A. 0.15.
B. uncertain without more information.
C. more than 0.15.
D. less than 0.15.
Answer: C. more than 0.15.
You might also like to view...
Use the following graph of the market for milk to answer the question below.
If 30 million gallons of milk are being produced, then we know marginal benefit
A. is less than marginal cost. B. and marginal cost do not depend on the quantity. C. is greater than marginal cost. D. equals marginal cost.
Suppose when the price of calculators is $18, the quantity demanded is 90, and when the price is $22, the quantity demanded drops to 70. Using the mid-point method, the price elasticity of demand is:
A. 1.25 B. 25 percent C. 20 percent D. 25
If Q = K1/2L1/2 the MPL is
a. constant b. increasing c. diminishing
In contrast to the need for legal enforcement under a system of direct controls, a taxes approach
a. is subject to greater uncertainty of payment of fees. b. makes taxes automatic and certain. c. speeds the prosecution and conviction process. d. does not actually reduce pollution, merely the cost of monitoring it.