The Demand for Most Products Is Likely to Be

question 56

Multiple Choice

The demand for most products is likely to be

• A) more elastic in the long run than in the short run.
• B) less elastic in the long run than in the short run.
• C) equally elastic in the short and long run.
• D) equally inelastic in the short and long run.

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Definitions:

Variable Inputs

Variable inputs in production are those inputs that change in quantity with the level of output, such as raw materials and labor.

Inputs

The resources such as labor, materials, and capital that are used in the production process to create goods and services.

AFC

Acronym that stands for Average Fixed Cost, the fixed costs of production divided by the quantity of output produced.

ATC

Average Total Cost, which is the total cost of production divided by the number of goods produced.