2013年微观经济学复习提纲备课讲稿.docVIP

学习-----好资料 Outline for Reviewing Microeconomics (2013) 3. Short Answer（3×10，30 points） Chapter 2 questions for review: 5, 6 5. Explain why for many goods, the long-run price elasticity of supply is larger than the short-run elasticity. The price elasticity of supply is the percentage change in the quantity supplied divided by the percentage change in price. In the short run, an increase in price induces firms to produce more by using their facilities more hours per week, paying workers to work overtime and hiring new workers. Nevertheless, there is a limit to how much firms can produce because they face capacity constraints in the short run. In the long run, however, firms can expand capacity by building new plants and hiring new permanent workers. Also, new firms can enter the market and add their output to total supply. Therefore, the price elasticity of supply is larger in the long run than in the short run. 6. Why do long-run elasticities of demand differ from short-run elasticities? Consider two goods: paper towels and televisions. Which is a durable good? Would you expect the price elasticity of demand for paper towels to be larger in the short run or in the long run? Why? What about the price elasticity of demand for televisions? Long-run and short-run elasticities differ based on how rapidly consumers respond to price changes and how many substitutes are available. If the price of paper towels, a non-durable good, were to increase, consumers might react only minimally in the short run- because it takes time for people to change their consumption habits. In the long run, however, consumers might learn to use other products such as sponges or kitchen towels instead of paper towels. In this case, then, the price elasticity would be larger in the long run than in the short run. In contrast, the quantity demanded of durable goods, such as televisions, might change dramatically in the short run following a price change. For example, the