Which of the Following Is True Regarding the Price Elasticity

question 34

Multiple Choice

Which of the following is true regarding the price elasticity of demand?

• A) Demand is generally more elastic in the long run than in the short run.
• B) Along a single demand curve, demand elasticity decreases as you move down the curve (to lower prices).
• C) A demand curve that is flatter (has a less steep slope) is relatively more elastic than a demand curve that has a steeper slope.
• D) All of the above are true.

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Definitions:

Externalities

Financial repercussions impacting individuals who are not primary participants, with effects ranging from beneficial to harmful.

Market-Equilibrium

A condition where market supply equals market demand, resulting in stable prices where the amount produced matches consumer demand.

Fire Extinguishers

Portable devices used to put out fires by discharging a jet of water, foam, gas, or other materials.

Private Cost

Private cost is the cost incurred by an individual or company in producing goods or services, excluding externalities.