Suppose that the price of gasoline doubles overnight. Why is the short-run price elasticity of demand for gasoline different from the long run?
It takes time to adjust. In the short run, you may car pool and/or cut down on automobile travel in other
ways. In the long run, you will buy a more fuel-efficient automobile.
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Two goods are considered substitutes only if a(n):
a. decrease in the demand for one leads to a decrease in the supply of the other. b. increase in the demand for one leads to a decrease in the supply of the other. c. increase in the price of one leads to an increase in the demand for the other. d. decrease in the price of one leads to an increase in the demand for the other. e. decrease in the supply of one leads producers to switch to production of the other.
All of the following are tangible goods except: a. a skateboard
b. a desk. c. a train locomotive. d. fairness.