The Long-Run Price Elasticity of Demand Is Usually Larger Than

question 34

Multiple Choice

The long-run price elasticity of demand is usually larger than the short-run price elasticity of demand because:

• A) demand curves tend to become steeper over time.
• B) economists take the absolute value of long-run price elasticities but not of short-run
• Elasticities.
• C) people have more time to find substitute goods.
• D) incomes tend to rise over time.

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Definitions:

Operational Innovation

The implementation of new business processes or the modification of existing processes to improve efficiency, quality, or performance.

Process Innovation

The development and implementation of new or improved production or delivery methods, enhancing efficiency, quality, or performance.

Implementation And Diffusion

The process of putting strategies, plans, or policies into effect and the subsequent spread of these innovations within or across organizations.

Innovation Process

A series of steps that include the generation, development, and implementation of new ideas or technologies.