(Figure) The figure shows two demand curves for two different periods for the same product. Based on the information in the graph, which statement is TRUE?
A) The flatter long-run demand curve implies that the price elasticity of demand is smaller compared to the short run.
B) The flatter long-run demand curve implies that the price elasticity of demand is greater compared to the short run.
C) The steeper short-run demand curve implies that the price elasticity of demand is equal to the long run.
D) The steeper short-run demand curve implies that the price elasticity of demand is larger compared to the long run.
Correct Answer:
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