Author Question: The demand for a good is less price elastic A) if closer substitutes are available. B) if the ... (Read 123 times)

savannahhooper · **on:** Jun 29, 2018

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.