Related to the Economics in Practice on Page 99: Which

question 87

Multiple Choice

Related to the Economics in Practice on page 99: Which of the following best explains why demand is often less elastic in the short run than it is in the long run?

• A) When demand is elastic, price increases reduce revenue because a small price increase will lead to a large decrease in quantity demanded.
• B) In the short run, consumers have less access to substitutes.
• C) Consumers tend to postpone making purchasing decisions as long as possible.
• D) In the short run, prices can change rapidly, but in the long run they are more stable.

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Definitions:

Wild Guesses

Attempts to answer or predict something without any basis, knowledge, or method.

Cerebral Cortex

The cerebral cortex is the outer layer of the cerebrum in the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.

Hippocampus

A crucial component of the brain located in the temporal lobe, playing a significant role in memory formation and spatial navigation.