The short-run elasticity of supply is less than the long-run elasticity of supply
A) because consumers' tastes and preferences change in the long run but not in the short run.
B) because producers can adjust the amount of machinery in the long run but not in the short run.
C) only for durable goods.
D) only for non-durable goods.
B
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Which of the following is the largest single component of the market basket used to compute the consumer price index (CPI)? a. Food and beverages. b. Housing
c. Transportation. d. Medical care.
Why are public goods provided by the government, rather than by the private sector?
A) because they are large-scale projects that require the kind of financing only governments can generate through the issuance of bonds B) because it would be difficult for a private sector firm to make a profit providing a public good, since consumers who benefit would not have to pay for it C) because no one really benefits from public goods D) because private sector firms do not have the foresight to plan for public goods