In the Long Run, Price Elasticities of Demand Are Usually

question 64

Multiple Choice

In the long run, price elasticities of demand are usually

• A) greater than they are in the short run because consumers have time to adjust.
• B) the same as they are in the short run because tastes don't change.
• C) less than they are in the short run because prices rise over time.
• D) less than they are in the short run because real prices fall over time.

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Definitions:

Insolvent

The condition in which an individual or organization is unable to meet financial obligations due to lack of funds.

UCC 2-702(2)

A provision within the Uniform Commercial Code that allows sellers of goods to withhold delivery if they discover the buyer to be insolvent, under certain conditions.

Reclaim Goods

The process of recovering goods that have been sold or disposed of, often seen in bankruptcy or default situations.

Cover

In contract law, the purchasing of goods or services by a buyer to replace those promised but not delivered by the seller.