How Do Consumers Who Are Subject to a Binding Price

question 122

Multiple Choice

How do consumers who are subject to a binding price ceiling respond as the time frame shifts from the short run to the long run?

• A) Consumers are increasingly willing to substitute away from the good,and their elasticity of demand becomes less elastic.
• B) There are no changes,and elasticity remains unchanged.
• C) Consumers are increasingly willing to substitute away from the good,and their elasticity of demand becomes more elastic.
• D) Consumers are less willing to substitute away from the good,and their elasticity of demand becomes less elastic.
• E) Consumers are less willing to substitute away from the good,and their elasticity of demand becomes more elastic.

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Definitions:

Cilia

Microscopic, hair-like structures that extend from the surface of some cells and are involved in movement or sensory functions.

Trachea

The windpipe, a tube that conducts air from the larynx to the bronchi of the lungs, facilitating breathing.

Smooth Muscle

A type of involuntary muscle found within the walls of organs and structures such as blood vessels, the gastrointestinal tract, and the bladder, characterized by its lack of striations.

Goblet Cell

A column-shaped cell found in the respiratory and intestinal tracts, which secretes mucus to trap and move pathogens and dirt.