When $\vec { C }$ Falls,the LRAS Curve:
A) Shifts to the Right

question 141

Multiple Choice

When $\vec { C }$ falls,the LRAS curve:

• A) shifts to the right.
• B) shifts to the left.
• C) becomes flatter.
• D) does not move.

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Definitions:

Elastic

Elastic refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Price Elasticity

Price elasticity refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Demand Schedule

A chart displaying the amounts of a product or service that buyers are ready and capable of purchasing at different price levels.

Relatively Inelastic

Describes a situation where the quantity demanded or supplied changes by a smaller percentage than the percentage change in price.