FIGURE 4-3 -Refer to Figure 4-3, Which Shows a Demand Shift and Shift

question 100

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 product. In the new long-run equilibrium at EL, producersʹ revenue

• A) is unambiguously lower than at ES.
• B) could be higher or lower than at ES, depending on the price elasticity of demand.
• C) is unambiguously lower than at E0.
• D) could be higher or lower than at E0, depending on the price elasticity of demand.
• E) is unambiguously higher than at ES.

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