Compared to the Short-Run Demand, the Long-Run Demand for a Resource

question 84

Multiple Choice

Compared to the short-run demand, the long-run demand for a resource is

• A) less elastic.
• B) more elastic.
• C) equally elastic.
• D) either more or less elastic; we cannot predict which.

---

Definitions:

Covert Collusion

Secret or concealed agreements between firms to fix prices, limit production, or divide markets, in order to increase profits illegally.

Demand Curve

A graphical representation of the demand schedule showing the inverse relationship between price and quantity demanded.

Oligopoly

A market structure characterized by a small number of firms that have significant control over market prices and competition.

Product Differentiation

The distinction between or among goods and services made in the minds of buyers.