In the long run, price elasticities of demand are usually ____
a. less than they are in the short run because people can adjust
b. the same as they are in the short run because tastes don't change
c. greater than they are in the short run because prices rise over time
d. less than they are in the short run because real prices fall over time
e. greater than they are in the short run because consumers have time to adjust
e
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Compared to workers in poor countries, workers in richer countries have
a. lower productivity but higher wages. b. higher productivity and higher wages. c. higher productivity but lower wages. d. the same productivity but higher wages.
Graphically, the area that represents the difference between the market price and the minimum price required to induce suppliers to produce a good is called
a. consumer surplus. b. producer surplus. c. marginal cost. d. triangular arbitrage.