When the price of a product rises, the increase in quantity supplied will generally be greater in the long run than the short run because
a. producers maximize short-run, not long-run, profits.
b. over time, new firms will enter the industry and old firms will expand their operations in response to the price increase.
c. consumers are less resistant to higher prices in the long run than in the short run because they have fewer options in the long run.
d. consumer income will expand in the long run, causing resource prices to rise, which will induce producers to increase output.
B
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Bicycle helmet laws are designed to reduce the severity of injuries resulting from bicycle involvement in traffic accidents. In this sense, the helmet laws are reducing ________ of risky behavior
A) positive externalities B) negative externalities C) transactions costs D) the efficiency
Which of the following contributes to a current account surplus for a country?
A) having tourists visit the country B) importing textiles C) having foreigners buy government securities from the country's government D) importing financial services
_____________ sector savings only sometimes (and partially) adjust to offset government budget deficits and surpluses.
a. Foreign b. Corporate c. Public d. Private
If this year the CPI is 110 and last year it was 100, then
a. the cost of the CPI basket of goods and services has increased this year by 110 percent. b. the price level as measured by the CPI has increased by 10 percent. c. the inflation rate for this year has increased by 10 percent over last year's inflation rate. d. All of the above are correct.