The Long-Run Price Elasticity of Demand Is Usually Larger Than

question 37

Multiple Choice

The long-run price elasticity of demand is usually larger than the short-run price elasticity of demand because:

• A) demand curves tend to become steeper over time.
• B) economists take the absolute value of long-run price elasticities but not of short-run elasticities.
• C) people have more time to find substitute goods.
• D) incomes tend to rise over time.

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Definitions:

Teller Transaction

A banking transaction conducted with a bank employee, such as a deposit or withdrawal, rather than through an automated mechanism.

ATM Transaction

An action carried out through an Automated Teller Machine (ATM), such as withdrawing cash, depositing funds, or checking account balances.

Barter Economy

An economic system where goods and services are exchanged directly for other goods and services without the use of money as a medium.

Money Economy

A system where goods and services are exchanged using money as a medium, rather than through barter.