Other Things Being Equal, the Longer a Price Change Persists

question 90

Multiple Choice

Other things being equal, the longer a price change persists

• A) the less is the elasticity of demand.
• B) the less chance a consumer will be able to adjust.
• C) the more the consumer will be willing to pay.
• D) the greater is the elasticity of demand.

Understand the derived demand for labor and other resources.

Grasp the impact of technological and external factors on the demand and supply of resources.

Evaluate the impacts of resource productivity changes on firm output.

Understand the relationship between resource prices, marginal revenue product, and employment levels in perfectly competitive firms.

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Definitions:

Paid-In Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares and amounts over par value.

Gain Or Loss

The financial result that occurs when the selling price of an asset differs from its original purchase price or adjusted basis.

Accrued Interest

Interest that has been earned but not yet received or paid, reflecting the cost of borrowing or the earnings on interest-bearing assets over a period.

Annual Interest Rate

The percentage of interest you earn or pay on an investment or loan over a year, not accounting for compounding.