Related to the Economics in Practice on Page 102: Which

question 136

Multiple Choice

Related to the Economics in Practice on page 102: Which of the following best explains why demand is often more elastic in the long run than it is in the short 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 long run, consumers have greater 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.

Understand the importance and impact of key figures, decisions, and innovations in the late 20th and early 21st centuries.

Comprehend the political strategies and dynamics of U.S. presidential elections between the 1980s and 2000.

Analyze the effects of judiciary decisions on U.S. society and politics, especially concerning abortion rights.

Recognize the role of technology, including the internet and GPS, in shaping contemporary society and globalization.

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Definitions:

Zero Price Elasticity

A situation where the demand for a good or service remains unchanged regardless of changes in its price.

Equilibrium Economic Rent

The excess returns to a factor of production over its opportunity cost when the market is in equilibrium, ensuring no incentive for resources to move.

Nationalization

The process by which a government takes control of a company or industry, often turning it from private to state ownership.

Scarce Resource

A resource that is limited in availability and cannot meet all demands placed on it by humans wanting unlimited access.