Which of the Following Statements Regarding Price Elasticity of Supply

question 37

Multiple Choice

Which of the following statements regarding price elasticity of supply and the length of time for adjustment is FALSE?

• A) The longer is the time period for adjustment, the greater is the price elasticity of supply.
• B) The longer is the time period for adjustment, the less is the extent to which resources flow into (or out of) an industry through expansion (or contraction) of existing firms.
• C) The longer is the time period for adjustment, the greater is the extent to which entry or (exit) of firms increases or (decreases) production in an industry.
• D) The shorter the time period for adjustment, the greater is the price elasticity of supply.

Understand the applications of hydraulic pressure in vehicle systems.

Grasp the principles of flow rate in hydraulic circuits.

Comprehend the mechanics of fluid movement in hydraulic systems.

Differentiate between gases, liquids, and vapors under the classification of fluids.

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Definitions:

Economists

Professionals who study how societies use available resources to produce valuable commodities and distribute them among different people.

Normative Statement

Describes expressions of what ought to be rather than what is, often reflecting opinions or prescriptions for policy rather than objective statements.

Legal Age

The age at which an individual is recognized by law as an adult and capable of accepting responsibility for actions.

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A method for making collective decisions or expressing an opinion, often used in democracies to choose representatives or make policy decisions.