Refer to Scenario 2 . Over a long period of time, in the absence of any restrictions in the market, would you expect the price elasticity of demand for crabs to be more elastic or inelastic? Explain
What will be an ideal response?
The longer the period of time, the price elasticity of demand will be greater as everyone has time to adjust and more goods become available for substitution.
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The aggregate demand curve slopes downward due to the:
a. Phillips-Curve effect, wealth effect, and net export effect. b. Productivity effect, income effect, and real money supply effect. c. Real money supply effect, wealth effect, and net export effect. d. Productivity effect, income effect, and Gibson paradox. e. Purchasing power effect, real money supply effect, wealth effect, and real goods effect.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.
Which of the following formulas is correct?
A. Profit = Revenue ?Cost B. Revenue = Profit ?Cost C. Profit = Revenue + Cost D. Revenue = Cost รท Profit
When money serves as a standard for comparing values of different things, it is functioning as a
A. hedge against inflation. B. standard of deferred payment. C. unit of accounting. D. store of value.