Ice cream can be frozen. In the short run the magnitude of the own price elasticity of demand for ice cream:
A) is higher than in the long run.
B) is lower than in the short run.
C) is the same as in the long run.
D) does not depend on the fact that ice cream can be frozen.
A
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All of the following conditions, except one, will necessarily be satisfied when a perfectly competitive firm is in short-run equilibrium. Which condition is the exception?
a. marginal revenue equals average total cost b. marginal cost crosses marginal revenue from below c. marginal revenue equals price d. price equals marginal revenue e. profit is maximized or loss is minimized
Which of the following is a property of an indifference curve? a. An indifference curve typically slopes downward
b. Two indifference curves always intersect. c. An indifference curve generally follows the principle of less is better. d. The value of utility changes along an indifference curve.