Suppose that the value of the short-run absolute elasticity of demand for a good is 0.38. Then, we know the long-run absolute price elasticity of demand will be
A) 0.
B) greater than 0.38.
C) elastic.
D) less than 0.38.

Multiple Choice

Related questions

Q 249

The absolute price elasticity of demand would be the lowest for
A) automobiles.
B) Pizza Hut pizza.
C) salt.
D) movie tickets.

Q 251

Suppose that the value of the long-run absolute elasticity of demand for a good is 1.21. Then, we know the short-run absolute price elasticity of demand will be
A) inelastic.
B) greater than 1.21.
C) elastic.
D) less than 1.21.

Q 252

Compared to the long-run absolute elasticity of demand, the short-run absolute elasticity of demand is
A) smaller.
B) the same.
C) larger.
D) either smaller or larger, depending on other factors.