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:

Rigid

Referring to something that is inflexible or strict, with no room for adjustment or deviation.

Static Organizations

Refer to organizations that maintain stable structures, processes, and strategies over time, resisting change and innovation.

Information Technology (IT)

involves the use of computers, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Democratizes

The process of making systems, processes, or information accessible and participatory to all, often involving the distribution of power away from a central authority.