Multiple Choice
(Figure) The figure shows two demand curves for two different periods for the same product. Based on the information in the graph, which statement is TRUE?
A) The flatter long-run demand curve implies that the price elasticity of demand is smaller compared to the short run.
B) The flatter long-run demand curve implies that the price elasticity of demand is greater compared to the short run.
C) The steeper short-run demand curve implies that the price elasticity of demand is equal to the long run.
D) The steeper short-run demand curve implies that the price elasticity of demand is larger compared to the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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