Regarding the concept of price-elasticity, which statement is incorrect? O a. A linear demand has constant slope, but variable price-elasticity. а. O b. In terms of price-elasticity, a linear demand or supply with zero slope is perfectly elastic. Oc. Price-elasticities are often lower in the short run than in the long run. O d. If supply is price-inelastic, shifts in demand will have a larger effect on the equilibrium quantity than on the equilibrium price. e. When demand is price-inelastic, decreases in P offset increases in Q, meaning less revenue (PQ) for producers.

Regarding the concept of price-elasticity, which statement is incorrect? O a. A linear demand has constant slope, but variable price-elasticity. а. O b. In terms of price-elasticity, a linear demand or supply with zero slope is perfectly elastic. Oc. Price-elasticities are often lower in the short run than in the long run. O d. If supply is price-inelastic, shifts in demand will have a larger effect on the equilibrium quantity than on the equilibrium price. e. When demand is price-inelastic, decreases in P offset increases in Q, meaning less revenue (PQ) for producers.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 3PA: Suppose the price elasticity of demand for heating oil is 02. in the short run and 0.7 in the long...

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If supply is elastic, will shifts in demand have a larger effect on equilibrium quantity or on price?
If demand is elastic, will shifts in supply have a larger effect on equilibrium quantity or on price?
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