As the Time Frame Shifts from the Short Run to the Long

question 172

Multiple Choice

As the time frame shifts from the short run to the long run,what happens to consumers who are subject to a binding price floor?

• A) They are increasingly willing to substitute away from the good,and the demand curve becomes less elastic.
• B) There are no changes,and elasticity remains unchanged.
• C) They are less willing to substitute away from the good,and the demand curve becomes less elastic.
• D) They are increasingly willing to substitute away from the good,and the demand curve becomes more elastic.
• E) They are less willing to substitute away from the good,and the demand curve becomes more elastic.

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Definitions:

Decrease

A reduction in size, quantity, or intensity of something.

College

An institution of higher education offering undergraduate programs, typically leading to associate or bachelor's degrees.

Mean-level Changes

Adjustments or shifts in the average value of a variable or trait over time or across groups.

Rank-order Consistency

The degree to which the relative ordering of individuals on a particular trait remains the same over time, even if the absolute level of the trait changes.