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Suppose the brand manager of Honey Bunches of Oats cereal lowers the price of the product by 4%. What will be the impact of this move in the short run and the long run? (Check all that apply.) A. Demand will be more elastic in the long run than it will be in the short run. B. The increase in quantity demanded will be larger in the short run than in the long run. C. The increase in quantity demanded will be larger in the long run than in the short run. D. Demand will be more elastic in the short run than it will be in the long run.

Suppose the brand manager of Honey Bunches of Oats cereal lowers the price of the product by 4%. What will be the impact of this move in the short run and the long run? (Check all that apply.) A. Demand will be more elastic in the long run than it will be in the short run. B. The increase in quantity demanded will be larger in the short run than in the long run. C. The increase in quantity demanded will be larger in the long run than in the short run. D. Demand will be more elastic in the short run than it will be in the long run.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 3PA: Suppose the price elasticity of demand for heating oil is 02. in the short run and 0.7 in the long...
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Suppose the brand manager of Honey Bunches of Oats cereal lowers the price of the product by 4%. What will be the impact of this move in the short run and the long run? (Check all that apply.) A. Demand will be more elastic in the long run than it will be in the short run. B. The increase in quantity demanded will be larger in the short run than in the long run. C. The increase in quantity demanded will be larger in the long run than in the short run. D. Demand will be more elastic in the short run than it will be in the long run.
Transcribed Image Text:Suppose the brand manager of Honey Bunches of Oats cereal lowers the price of the product by 4%. What will be the impact of this move in the short run and the long run? (Check all that apply.) A. Demand will be more elastic in the long run than it will be in the short run. B. The increase in quantity demanded will be larger in the short run than in the long run. C. The increase in quantity demanded will be larger in the long run than in the short run. D. Demand will be more elastic in the short run than it will be in the long run.
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