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

question 184

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.
• E) supply curves change over time.

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Definitions:

Cognitive Behavioral

Pertaining to a type of psychotherapeutic treatment that helps individuals understand the thoughts and feelings that influence behaviors, primarily through the analysis and correction of cognitive distortions.

Self-defeating Beliefs

Cognitive patterns that are negative and undermine an individual's ability to achieve personal goals or maintain healthy relationships.

Psychoanalytic

Pertaining to a method of psychological theory and therapy that aims to treat mental disorders by investigating the interaction of conscious and unconscious elements in the mind.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or unhealthy ways of thinking, thus influencing behavior and emotional state.