Why Are Long-Run Demand Curves Likely to Be More Elastic

question 84

Multiple Choice

Why are long-run demand curves likely to be more elastic than short-run demand curves?

• A)Prices tend to rise in the long-run.
• B)Prices tend to be stable in the long-run.
• C)Consumers have more time to adjust their purchase decisions in response to a change in price.
• D)Supply tends to adjust in the long run.

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Definitions:

Earnings Rate

The return on an investment for a specific period, typically expressed as a percentage of the investment's initial cost.

Internal Rate Of Return

A financial metric used to evaluate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a project equal to zero.

Useful Life

The period over which an asset is expected to be usable by a company for the purpose of its operations.

Automatic Insertion Machine

Equipment used in manufacturing to automatically place components onto printed circuit boards or other assemblies with precision and speed.