The Long-Run Price Elasticity of Demand Is Usually Larger Than

question 184

Multiple Choice

The long-run price elasticity of demand is usually larger than the short-run price elasticity of demand because:

• A) demand curves tend to become steeper over time.
• B) economists take the absolute value of long-run price elasticities but not of short-run elasticities.
• C) people have more time to find substitute goods.
• D) incomes tend to rise over time.
• E) supply curves change over time.

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Definitions:

Isopropyl

A hydrocarbon group or radical with the molecular formula C3H7, derived from propane by the removal of one hydrogen atom from the middle carbon.

Pent-2-ene

An unsaturated hydrocarbon with a double bond between the second and third carbon atoms in a five-carbon chain.

Oxetane

A four-membered cyclic ether characterized by an oxygen atom bonded to three carbon atoms.

Hybridization

The concept explaining the bonding in molecules by combining atomic orbitals into new hybrid orbitals suitable for pairing with other atoms.