Gasoline in the Long Run Will Generally Exhibit

question 55

Multiple Choice

Gasoline in the long run will generally exhibit:

• A)greater elasticity of demand than in the short run.
• B)greater elasticity of demand that for jewelry.
• C)less elasticity of demand than in the short run.
• D)less elasticity of demand than with regard to insulin for diabetics.

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Definitions:

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.

Price

The amount of money required to purchase a good, service, or asset, determined by supply and demand dynamics.

Natural Monopoly

A market condition where a single firm can provide goods or services to an entire market at a lower cost than if there were multiple firms in the industry.