The demand for a good is less price elastic A) if closer ...

[savannahhooper]

The demand for a good is less price elastic
 
  A) if closer substitutes are available.
  B) if the good is a luxury rather than a necessity.
  C) if the share of the good in the average consumer's budget is smaller.
  D) in the long run than in the short run.

Question 2

In the above figure, the short-run aggregate supply curve is SAS and the aggregate demand curve is AD. An inflationary gap exists
 
  A) if the long-run aggregate supply curve is LAS1.
  B) if the long-run aggregate supply curve is LAS2.
  C) if the long-run aggregate supply curve is LAS3.
  D) All of the above answers are correct.

[jlaineee]

Answer to Question 1

C

Answer to Question 2

A

[savannahhooper]

Gracias!

[peter]

Great answer, keep it coming