Which of the following statements is true?
A. Supply is inelastic in the short run, whereas demand is inelastic only in the long run.
B. Supply and demand tend to be much more elastic in the long run than in the short run.
C. Supply is elastic in the short run, whereas demand is elastic only in the long run.
D. Supply and demand tend to be much more inelastic in the long run than in the short run.
Answer: B
You might also like to view...
In the table above, if there are 80 umbrellas produced, the deadweight loss from the 80th umbrella is
A) $10. B) $20. C) $30. D) $40.
Price elasticity is a measure of how
A. much a market responds to a change in market conditions. B. much consumers or producers respond to a change in market price. C. quickly consumers or producers respond to a change in market price. D. quickly a market will respond to a change in market conditions.
Other things being equal, a fall in the price of orange juice will decrease the quantity supplied
a. True b. False Indicate whether the statement is true or false
Thomas faces prices of $6 for a unit of good X and $30 for a unit of good Y. At his optimum, Thomas is willing to give up 1 unit of good Y for __________ units of good X
Fill in the blank(s) with correct word