Which of the Following Statements Is True About the Price

question 160

Multiple Choice

Which of the following statements is true about the price elasticity of demand?

• A)It is higher in the short run than in the long run because people's habits change slowly.
• B)It is higher in the long run than the short run because people have more time to find substitute products.
• C)It is the same in the short run and the long run.
• D)It is higher in the short run because markets adjust slowly to changes.

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Definitions:

Price-Fixing Agreements

Illegal arrangements where competing businesses agree on pricing of goods or services, undermining free market competition.

Sherman Act

A foundational antitrust law in the United States that prohibits monopolistic practices and promotes competition.

Free Competition

An economic condition where businesses are allowed to compete without undue restrictions, encouraging innovation and fair prices.

Monopolizing

The act of dominating a particular market or industry, often by eliminating or significantly reducing competition.