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Question
As the time frame shifts from the short run to the long run, what happens to consumers who are subject to a binding price floor?
a. They are increasingly willing to substitute away from the good, and the demand curve becomes less elastic.
b. There are no changes, and elasticity remains unchanged.
c. They are less willing to substitute away from the good, and the demand curve becomes less elastic.
d. They are increasingly willing to substitute away from the good, and the demand curve becomes more elastic.
e. They are less willing to substitute away from the good, and the demand curve becomes more elastic.
Answer
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