Given That Elasticity of Supply Changes Over Time,in the Short

question 55

Multiple Choice

Given that elasticity of supply changes over time,in the short run an increase in demand will generally cause

• A)the price to rise above its long-run equilibrium value.
• B)the price to rise to a level below its long-run equilibrium value.
• C)the quantity exchanged to rise above its long-run equilibrium value.
• D)both price and quantity exchanged to rise above their long-run equilibrium values.
• E)supply to change.

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Definitions:

Portfolio Diversification

The practice of investing across different financial assets to reduce risk by spreading exposure.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be reduced through diversification.

Total Risk

The complete range of risks involved in an investment, encompassing both systematic and unsystematic risks.

Expected Return

The anticipated amount of profit or loss an investment is expected to generate over a given period.