According to the Case in Point on Price Elasticity of Home

question 199

Multiple Choice

According to the Case in Point on price elasticity of home water demand in Phoenix, the researchers Yoo, Simonit, Kinzig, and Perrings found that:

• A) the absolute value of the price elasticity of demand was higher in the short run than in the long run.
• B) the absolute value of the price elasticity of demand was lower in the short run than in the long run.
• C) people can adjust more easily to changes in the price of water in the short run than in the long run.
• D) low-income/low water-users are less responsive to price changes than are high-income/high water-users.

---

Definitions:

T Account

A visual representation of a general ledger account that helps in understanding the effects of transactions on each account.

Copyrights

Legal rights granted to creators for the protection of their original works, preventing unauthorized reproduction, distribution, or alteration.

Credit Side

The right side of an accounting ledger where credits are recorded, typically indicating an increase in liabilities or revenues or a decrease in assets or expenses.

Journalizing

The process of recording transactions in a journal. This is the first step in the accounting cycle, where financial transactions are initially recorded.