When Price Changes, the Effect on Quantity Demanded Is Larger

question 164

Multiple Choice

When price changes, the effect on quantity demanded is larger as time passes at least partly because

• A)people are better able to search out alternatives in the long run.
• B)government regulations affect the short run but not the long run.
• C)consumers are irrational in the short run.
• D)fewer people consume in the long run than in the short run.
• E)most consumers do not realize price has changed in the short run.

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Definitions:

Observations

The act of noting and recording something with instruments or the senses as a part of scientific research or empirical study.

Paradigm Shift

A fundamental change in the basic concepts and experimental practices of a scientific discipline.

Falsifiable Hypothesis

A hypothesis that can be demonstrated to be false by an experiment or observation, a critical aspect of the scientific method.

Prokaryotes

Single-celled organisms that lack a nucleus and membrane-bound organelles, including bacteria and archaea.