Are each the following statements true or false? Explain. a. If the demand for milk rose, then,
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Are each the following statements true or false? Explain.
a. If the demand for milk rose, then, in the long run, milk-drinkers would be better off if supply were elastic rather than inelastic.
b. Long-run price elasticities of supply are generally larger than short-run price elasticities of supply. As a result, the short-run supply curves are generally flatter than the long-run supply curves.
c. When supply is perfectly elastic, changes in demand have no effect on price.
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