What Is the Difference Between the Short-Run Framework and the Long-Run

question 73

Essay

What is the difference between the short-run framework and the long-run framework? How does each relate to supply and demand? Explain.

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Definitions:

Minimum Threshold

The lowest level at which a stimulus can be detected by the senses.

Difference Threshold

is the minimum difference in stimulation required to differentiate two stimuli, also known as the just noticeable difference.

Absolute Threshold

The minimum intensity of a stimulus that one can perceive, indicating the lowest level at which an individual can detect a stimulus 50% of the time.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time.