Homework Answers
In the long run, people get enough time to get adjusted with the changes in prices than in the short run.
This allows them to make purchasing decisions very carefully by analysing the prices of all the substitutes of a good they wish to buy and ajust their demand accordingly by selecting a substitute with a least price.
But in short run, people are forced to take decisions quickly and randomly and they do not adjust to the price changes well.
Therefore in long run, people will have a Very elastic demand as they will switch to substitutes when the price of any good rises.
Hence, the long term elasticity of gasoline is higher than the short term elasticity.
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The Long-Term elasticity of gasoline is higher than the Short-Term elasticity of gasoline. Why is this...
The Long-Term elasticity of gasoline is higher than the Short-Term elasticity of gasoline. Why is this...
The Long-Term elasticity of gasoline is higher than the Short-Term elasticity of gasoline. Why is this the case?
The price elasticity of demand for gasoline is likely to be higher in the long run...
The price elasticity of demand for gasoline is likely to be higher in the long run than in the short run. False True
Why do long term securities have a higher return than short term securities ?
Why do long term securities have a higher return than short term securities ?
The cost of long-term borrowing is usually higher than the cost of short-term borrowing. The graph...
The cost of long-term borrowing is usually higher than the cost of short-term borrowing. The graph that shows the relationship between maturity and interest rates for U.S. Government’s borrowings (Treasuries) is called “term structure of the interest rates” or “the yield curve”. Shape of the yield curve is often used by economists to forecast future status of the economy 1. Discuss why long-term rates are usually higher than short-term rates (upward yield curve) 2. Discuss under what economic conditions long-term...
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13. Short-term versus long-term financing Generally speaking, short-term debt is riskier than long-term debt, but it...
13. Short-term versus long-term financing Generally speaking, short-term debt is riskier than long-term debt, but it also has some advantages. In the following table, identify which type of funding (short-term debt or long-term debt) is being described in each case. Short-term Debt Long-term Debt This loan has more covenants that restrict the firm's actions. This loan is more flexible and can be used to adapt to changing market conditions. The lender will insist on a more thorough financial examination before...
Why does my teachers notes say you get a higher return on a long term security...
Why does my teachers notes say you get a higher return on a
long term security because they have higher interest rates than
short term securities but on the bottom section by the descending
curve she put that short term securities have higher interest rate
than long term? Please explain again to me are interest rates
higher in inflation and lower in deflation
Wh Exect a hightr num on a long tom Stcunry becaue ing Seunnu hav diffor aniy in...
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1. a) Assume the long run elasticity of demand for gasoline is -0.2 and start with...
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5. In the short run, total costs of production are usually higher than in the long...
5. In the short run, total costs of production are usually higher than in the long run. Why?
The price elasticity of demand for gasoline is likely to be higher in the long run than in the short run. False True
13. Short-term versus long-term financing Generally speaking, short-term debt is riskier than long-term debt, but it also has some advantages. In the following table, identify which type of funding (short-term debt or long-term debt) is being described in each case. Short-term Debt Long-term Debt This loan has more covenants that restrict the firm's actions. This loan is more flexible and can be used to adapt to changing market conditions. The lender will insist on a more thorough financial examination before...
Why does my teachers notes say you get a higher return on a
long term security because they have higher interest rates than
short term securities but on the bottom section by the descending
curve she put that short term securities have higher interest rate
than long term? Please explain again to me are interest rates
higher in inflation and lower in deflation
Wh Exect a hightr num on a long tom Stcunry becaue ing Seunnu hav diffor aniy in...
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