9. The constraint of time limits the ability of consumers to adjust to changes in prices. A...

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9. The constraint of time limits the ability of consumers to adjust to changes in prices.

A price increase will usually elicit a larger reduction in quantity demanded with the passage of time. Similarly, the market supply curve is usually more elastic in the long run than for the short-term time period.

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Macroeconomics Private And Public Choice

ISBN: 9780123110701

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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