How Do Consumers Who Are Subject to a Binding Price

question 122

Multiple Choice

How do consumers who are subject to a binding price ceiling respond as the time frame shifts from the short run to the long run?

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

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Definitions:

Observer Bias

The tendency for observers to see, report, or record what they expect to see, rather than what is actually happening, due to preconceived notions or beliefs.

Survey Method

A research technique used to gather data through questionnaires or interviews from a sample of individuals.

Case Study

A research method that involves an in-depth analysis of a single individual, group, event, or situation to explore causation in order to find underlying principles.

Single-blind Study

A study design where the participants do not know which group (experimental or control) they are in to prevent bias, but the researchers do.