How the price elasticity of demand for carsto be larger

Assignment Help Macroeconomics
Reference no: EM13233366

"When analyzing demand and supply, it is important todistinguish between the short run and the long run. In other words,if we ask how much demand or supply changes in response to a changein price, we must be clear about how much time is allowed to passbefore measuring the changes in the quantity demanded or supplied.In general, short-run demand and supply curves look very differentfrom their long-run counterparts." Consider two goods: carsand burgers.

Would you expect the price elasticity of demand for carsto be larger in the short-run or in the long-run? Why?

Reference no: EM13233366

Questions Cloud

Collapse of the roman republic : I need help on comparing the collapse of the Roman Republic to the end of the Roman Empire. What are the differences and what are the similarities?
Which technology half or full duplex has a lower effective : Which technology (half or full duplex) has a lower effective throughput rate
Explain what is the final ph and the ka of acetic acid : a solution containing 0.5000 moles of acetic acid per liter to 400.0 mL of 0.3000 M NaOH. What is the final pH? The Ka of acetic acid is 1.77*10-5.
What is the velocity of the 1st blcok : A block of mass .250 kg traveling at (1.0 m/s)y hits a second block with a .375 kg mass travelling at (1.2m/s)x, What is the velocity of the 1st blcok after they hit each other
How the price elasticity of demand for carsto be larger : In other words,if we ask how much demand or supply changes in response to a changein price, we must be clear about how much time is allowed to passbefore measuring the changes in the quantity demanded or supplied.
How could these differences create a problem for acquiring : Suppose a British computer firm is acquiring a smaller competitor located in Frankfurt, Germany.
Define the k of hypochlorous acid : A 15.0mL aliquot of KOH 0.300 M is added to 500.0 mL of a buffer solution that is 0.225 M in hypochlorous acid (HClO) and 0.333 M in sodium hypochlorite. What is the pH of the solution? The K of hypochlorous acid is 3.8*10-8.
Scientific revolution as a whole : What is the significance of Isaac Newton's Principia in developing the field of astronomy and the scientific revolution as a whole?
True or false a hub capable of operating full duplex mode : A hub is capable of operating in full duplex mode

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain how do you go about drawing an indifference

Explain how do you go about drawing an indifference for such a utility function.

  Expected wealth and utility

After her final exam this semester, Sylvia must drive from her school in Philadelphia to her home in upstate New York-What are Sylvia's expected .ne, expected wealth, and expected utility if she travels through PA?

  Obtain the average variable cost function

Find (algebraically) the points where the MC function intercepts the AVC and the ATC functions. (Hint: at one interception point MC = AVC and at the other MC = ATC)

  Calculate equilibrium level of national income

Assume W = 10 000. Draw the aggregate expendi­ture function on a scale diagram along with 45°line. What is the equilibrium level of national income?

  How does an active fiscal policy helps

How does an active fiscal policy helps or hinder long-run growth in the economy.

  What is the mrts between the css and the sts

Smokey's Garage, Inc., provides routine auto diagnostics for customers in the Atlanta metropolitan area. Tests are supervised by skilled mechanics using equipment produced by two leading competitors in the auto test equipment industry. Records f..

  Students explore the reasons behind regulating banks

In the particular assignment due this week, students explore the reasons behind regulating banks also how that regulation relates.

  Question about maximizing profit

Suppose that we are selling bottles of CocaCola in a vending machine. Currently, we charge $1.50 per bottle and have discovered through trial-and error that if we increase the price by 1 percent,

  Effect of decrease in price of substitute good

Suppose that a competitive industry is in long Run competitive equilibrium. Then the price of substitute  good (in consumption) decreases. What will happen to the short run to

  What is a typical indifference curve for the case

What is a typical indifference curve for the case in which the marginal utilities of both goods are positive and the marginal rate of  substitution of hamburgers for Cokes is diminishing. Explain the relationship between the indifference curve

  Illustrate what does the fundamental assumption of marginal

Illustrate what does the fundamental assumption of marginal utility theory suggest about the connection between money and happiness.

  Determining minimum wage effects

The government of a large United State city recently established a living wage law that starting January 1 of next year, will require all businesses operating within city limits to pay their workers a wage no lower than $8.50 per hour.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd