For an Increase in Demand, the Price Effect Is Smallest

question 20

Multiple Choice

For an increase in demand, the price effect is smallest and the quantity effect is largest

• A)when supply is least elastic.
• B)in the long run.
• C)in the short run.
• D)in the immediate market period.

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Definitions:

Business Combination

A transaction in which an acquirer gains control of one or more businesses.

Consolidated Expenses

The total expenses of a group of companies after eliminating intercompany transactions, reported in consolidated financial statements.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties, other than in a forced or liquidation sale.