The price elasticity of demand increases with the length of the period considered because consumers incomes will increase over time the demand curve will shift outward as time passes all prices will increase over time consumers will be better able to find substitutes. 2 A profit-maximizing firm in the short run will expand output until marginal cost begins to rise until total revenue equals total cost until marginal cost equals average variable cost as long as marginal revenue is greater than marginal cost
The price elasticity of demand increases with the length of the period considered because consumers incomes will increase over time the demand curve will shift outward as time passes all prices will increase over time consumers will be better able to find substitutes. 2 A profit-maximizing firm in the short run will expand output until marginal cost begins to rise until total revenue equals total cost until marginal cost equals average variable cost as long as marginal revenue is greater than marginal cost
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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- The
price elasticity of demand increases with the length of the period considered because
consumers incomes will increase over time
the demand curve will shift outward as time passes
all prices will increase over time
consumers will be better able to find substitutes.
2 A profit-maximizing firm in the short run will expand output
until marginal cost begins to rise
until total revenue equals total cost
until marginal cost equals
as long as marginal revenue is greater than marginal cost
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