The Longer the Time Frame Involved, the More Likely It

question 270

Multiple Choice

The longer the time frame involved, the more likely it is that the demand will be relatively

• A) elastic.
• B) inelastic.
• C) steep.
• D) flat.

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Definitions:

Binding Price Ceiling

A government-imposed limit on the price of a good or service that is below the market equilibrium price, leading to shortages.

Hybrid Cars

Vehicles powered by a combination of an internal combustion engine and one or more electric motors, using less fuel and emitting fewer pollutants than traditional cars.

Rent Controls

Government-imposed limitations on the amount landlords can charge for leasing a property.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied.