Multiple Choice help:
A. True or False: Whenever demand conditions change, the dynamics of equilibrium prices will be different depending on the length of time allowed for firms' supply responses.
B. In the very short run:
- the market supply is fixed.
- demand elasticity is unitary.
- supply is perfectly elastic.
- market demand is fixed.
C. In the very short run, the function of prices is to:
- impose taxes.
- ration demand.
- ration supply.
- inform suppliers about how much to produce.
D. True or False:
In the short run, firms are able to adjust their quantity supplied, as opposed to the very short-run.
E. True or False:
The market supply is upward-sloping in the short run.