If the Short Run Elasticity of Demand for Widgets Is

question 219

Multiple Choice

If the short run elasticity of demand for widgets is 0.4 and the long run elasticity of demand for widgets is 0.95, an increase in price will ____ total revenue in the short run and ____ total revenue in the long run.

• A)​Increase; increase.
• B)​Increase; decrease.
• C)​Decrease; increase.
• D)​Decrease; decrease.

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Definitions:

Probable Cause

Reasonable grounds to believe the existence of facts warranting certain actions, such as the search or arrest of a person.

Likely Crime

An action or omission that is probable to be considered criminal under the law.

Substantial Likelihood

A significant probability or chance of a particular outcome or event happening, often requiring action or consideration in legal contexts.

Search Warrant

A written order, based on probable cause and issued by a judge or public official, commanding that police officers or criminal investigators search a specific person, place, or property to obtain evidence.