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:

Cost-benefit Principle

This refers to the economic principle that actions or decisions should be pursued only if the benefits outweigh the costs.