Because suppliers can more readily adjust their output in the long run than in the short run, we expect price elasticity of supply to be
a. negative in the long run and positive in the short run
b. positive in the long run and negative in the short run
c. greater than one in the short run and less than one in the long run
d. higher in the long run than in the short run
e. higher in the short run than in the long run
D
You might also like to view...
The nice thing about foreign exchange markets is that the goods are money, and they are paid for with money. This means that if the U.S. dollar ____ the Japanese yen ____
a. goes down; goes down b. goes up; goes up c. buys more yen; buys more dollars d. buys fewer yen; buys fewer dollars e. buys more yen; buys fewer dollars
Assume an economy produces only hamburgers and hotdogs and the base year is 2005. Quantity producedPrices 2005200620052006Hamburgers2,0003,0002$3Hotdogs3,0004,0001$1.50Given the data in the table above, what is the value of real GDP in 2006?
A. $ 7,000 B. $ 5,000 C. $10,000 D. $10,500