FIGURE 4-3 -Refer to Figure 4-3,which Shows a Demand Shift and the and the Short-Run

question 154

Multiple Choice

FIGURE 4-3
-Refer to Figure 4-3,which shows a demand shift and the short-run and long-run supply curves for some good.The diagram illustrates the general principle that

• A)supply is less elastic in the long run.
• B)demand is less elastic in the long run.
• C)supply is more elastic in the long run.
• D)both demand and supply are less elastic in the long run.
• E)demand is more elastic in the long run.

---

Definitions:

Freak Airplane Accident

An unusual and unexpected airplane incident resulting in damage or injury.

Contract Frustration

A legal concept that occurs when unforeseen circumstances prevent the fulfillment of a contract, thus releasing the parties from their contractual obligations.

Contract Repudiation

The refusal to perform duties or obligations under a contract, which can lead to legal actions for breach of contract.

Breach

A violation or infraction of a law, duty, or agreement.