Author Question: The reason that supply and demand tend to be more price elastic over longer time periods is because ... (Read 104 times)

TVarnum · **on:** Jun 30, 2018

The reason that supply and demand tend to be more price elastic over longer time periods is because

A) it takes time for households and businesses to adjust to price changes.
B) some goods have longer shelf life and are reordered less often.
C) firms incur costs in changing the price of goods on their shelves.
D) the feedback loop from buyers to sellers takes time.

Question 2

A necessary condition for exchange rate stability where the sum of the elasticity of import demand and the elasticity of export supply must be greater than one is known as

A) the Marshall Lerner condition.
B) the elasticities rule.
C) the elasticities approach.
D) the exchange rate condition.