FIGURE 4- 3
-Refer to Figure 4- 3. The diagram shows a rightward shift in the demand curve for some good, and the short- run and long- run supply curves (SS and SL, respectively). In the new short- run equilibrium after the increase in demand, producers' revenue
A) could be higher or lower than at E0, depending on the short- run elasticity of supply.
B) is unambiguously lower than at E0.
C) is unambiguously higher than at E0.
D) is unambiguously higher than at EL.
E) is unambiguously lower than in the long- run equilibrium at EL.

Question

FIGURE 4- 3
-Refer to Figure 4- 3. The diagram shows a rightward shift in the demand curve for some good, and the short- run and long- run supply curves (SS and SL, respectively). In the new short- run equilibrium after the increase in demand, producers' revenue
A) could be higher or lower than at E0, depending on the short- run elasticity of supply. 
B) is unambiguously lower than at E0. 
C) is unambiguously higher than at E0. 
D) is unambiguously higher than at EL. 
E) is unambiguously lower than in the long- run equilibrium at EL.

Quizplus · Accepted Answer

The Answer of  FIGURE 4- 3
-Refer to Figure 4- 3. The diagram shows a rightward shift in the demand curve for some good, and the short- run and long- run supply curves (SS and SL, respectively). In the new short- run equilibrium after the increase in demand, producers' revenue
A) could be higher or lower than at E0, depending on the short- run elasticity of supply. 
B) is unambiguously lower than at E0. 
C) is unambiguously higher than at E0. 
D) is unambiguously higher than at EL. 
E) is unambiguously lower than in the long- run equilibrium at EL.

FIGURE 4- 3 -Refer to Figure 4- 3. the Diagram Shows a Rightward