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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