Price Elasticity of Demand and Price Elasticity of Supply Are

question 148

Multiple Choice

Price elasticity of demand and price elasticity of supply are both influenced by

• A)the availability of close substitutes for the product
• B)the proportion of the consumer's budget spend on the product
• C)the length of the adjustment period considered
• D)technological conditions such as the additional costs of increasing production
• E)none of the above

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Definitions:

Underestimate

To judge something below its actual value, size, or importance.

Complete A Task

This means to finish or accomplish a given work or activity usually with a specific goal in mind.

Availability Heuristic

An intellectual shortcut that depends on the readily accessible examples in someone's memory upon contemplating a certain subject, notion, technique, or judgment.

Rare Events

Events that occur infrequently or have a low probability of happening within a given time frame.