Question

18. Which of the following statements about the elasticity of demand are likely to be true? 1) the elasticity of demand is generally larger in the long run than in the short run II) the elasticity of demand is generally larger in the short run than in the long run III) if the elasticity of demand is perfectly elastic, the buyer bears all of the burden of a tax IV) if the elasticity of demand is perfectly inelastic, the buyer bears all of the burden of a tax A) only! B) only 11 C) only III D) only IV E) I & II F) I & III G)I & IV H) II & III 1) II & IV J) III & IV K) I, II & III L) I, II & IV M) I, III & IV N) II, III & IV O) all four P) none of the four