The Longer Any Price Change Persists, the

question 119

Multiple Choice

The longer any price change persists, the

• A) more difficult it is to alter quantity demanded.
• B) greater is the price elasticity of demand.
• C) lower is the price elasticity of demand.
• D) more likely price will return to its original level.

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Definitions:

Supply Of Labor

The total number of workers willing and able to work in an economy, including both employed and unemployed individuals actively seeking jobs.

Demand For Labor

The desire or need for employees by employers, determined by the wage rate and the level of production required by the firm or economy.

Price Floor

A government or regulatory-imposed minimum price for a good or service, intended to ensure that the market price does not fall below a certain level.

Surplus

The amount of a product or resource that exceeds the amount actually utilized or demanded.