The price elasticity of demand for a good tends
A) not to vary over time because people adjust to changed circumstances.
B) to be greater over the long run than over a short period of time.
C) to be less over the long run than over a short period of time.
D) to rise when the demand increases.
E) toward unity in the long run.
B
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The above figures show the market for oranges. Which figure(s) shows the effect of a new government program that provides each public school child with an orange to start the day?
A) Figure A B) Figure D C) Figures A and C D) Figures A and D
Java Joe sells 200 cups of coffee each day in a perfectly competitive market at the market price of $2.00 per cup. If Java Joe independently decreased its price per cup to $1.50,
a. its sales would rise to 250 cups b. its revenue would decrease c. its revenue would rise d. its total revenue would equal $200 e. the market price will fall to $0.75 as other coffee sellers match the price cut