The long-run price elasticity of demand is usually larger than the short-run price elasticity of demand because:
a. demand curves tend to become steeper over time.
b. economists take the absolute value of long-run price elasticities but not of short-run elasticities.
c. people have more time to find substitute goods.
d. incomes tend to rise over time.
e. supply curves change over time.
c
You might also like to view...
The ability to produce a good at a lower opportunity cost than someone else is called
A) competitive production. B) comparative advantage. C) selective advantage. D) absolute advantage.
With respect to consuming food and shelter, two consumers face the same prices and both claim to be in equilibrium. We therefore know that
A) they both have the same marginal utility for food. B) they both have the same marginal utility for shelter. C) they both have the same MRS of food for shelter. D) All of the above.
Interest rates rising and falling by a wide range on a regular basis often are an indication of
A. seasonal unemployment. B. economic instability. C. flexible capital. D. price equilibrium.
The 1980s were a Lost Decade for Latin America
Indicate whether the statement is true or false