The long-run price elasticity of demand is usually larger than the short-run price elasticity of demand because:
a. demand curves tend to become steeper over time.
b. economists take the absolute value of long-run price elasticities but not of short-run elasticities.
c. people have more time to find substitute goods.
d. incomes tend to rise over time.
e. supply curves change over time.
c
Economics
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Refer to the above table. You are given information on Jasmin's consumption for 2005 and 2015. Using 2005 as the base year, compute the price index for 2015. The index equals
A) 1.5. B) 70.588. C) 141.667. D) 107.143.
Economics
The multiplier effect of a tax cut is ______ the multiplier effect of an equal amount of government spending.
a. less than b. the same as c. a little more than d. much more than
Economics