When analyzing demand and supply it is important


"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?

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: When analyzing demand and supply it is important
Reference No:- TGS0584940

Expected delivery within 24 Hours