Author Question: Refer to Scenario 2 . Over a long period of time, in the absence of any restrictions in the market, ... (Read 83 times)

jazziefee · **on:** Jun 29, 2018

Refer to Scenario 2 . Over a long period of time, in the absence of any restrictions in the market, would you expect the price elasticity of demand for crabs to be more elastic or inelastic? Explain.

What will be an ideal response?

Question 2

Refer to Figure 3-1. An increase in the expected future price of the product would be represented by a movement from

A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.

mjbamaung · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

The longer the period of time, the price elasticity of demand will be greater as everyone has time to adjust and more goods become available for substitution.

Answer to Question 2

C