3) Multipole choice: When you compare the absolute value of the price elasticity of demand for most products [Hint, oil is one product that works this way.] in the long run (20 years) vs. absolute value of the elasticity of demand for the products in the short run (6 months), the absolute value of the long run price elasticity of demand is… [Note: we consider demand elasticity positive, even though they’re technically negative. In other words, for purposes of this question, “greater” means farther away from zero.] a) less than that of the short run. In the long run, this elasticity will always be very close to zero. b) not zero, but less than that of the short run. c) equal to that of the short run. d) greater than that of the short run.
Option D is correct.
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