As the Time Frame Shifts from the Short Run to the Long

question 172

Multiple Choice

As the time frame shifts from the short run to the long run,what happens to consumers who are subject to a binding price floor?

• A) They are increasingly willing to substitute away from the good,and the demand curve becomes less elastic.
• B) There are no changes,and elasticity remains unchanged.
• C) They are less willing to substitute away from the good,and the demand curve becomes less elastic.
• D) They are increasingly willing to substitute away from the good,and the demand curve becomes more elastic.
• E) They are less willing to substitute away from the good,and the demand curve becomes more elastic.

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Definitions:

Capital Gains

The profit earned from the sale of an asset or investment for more than its purchase price.

Interest Income

The revenue earned from lending funds or through investments in interest-bearing financial instruments.

New Brunswick

A province located on the east coast of Canada, known for its forested terrain and maritime industries.

Liquid

Refers to assets that can be easily converted into cash with minimal impact on their value.