Why do long-run elasticities of demand differ from short-run elasticities? Consider two goods:… 1 answer below »


Why do long-run elasticities of claim disagree from short-run elasticities? Consider two cheerfuls: tract towels and televisions. Which is a continuing cheerful? Would you forecast the compensation elasticity of claim for tract towels to be larger in the short-run or in the long-run? Why? What about the compensation elasticity of claim for televisions?