As interest rates rise, more and more investments become profitable for a firm

When demand is perfectly inelastic, there is no change in quantity demanded after a change in price.

Answer the following statement true (T) or false (F)

Related to the Economics in Practice on page 102: Which of the following best explains why demand is often less elastic in the short run than it is in the long run?

A. Consumers tend to postpone making purchasing decisions as long as possible. B. In the short run, consumers have less access to substitutes. C. In the short run, prices can change rapidly, but in the long run they are more stable. D. When demand is elastic, price increases reduce revenue because a small price increase will lead to a large decrease in quantity demanded.