Answer to Question #112790 in Microeconomics for Bassant

Question

In an analysis of the market for paint, an economist discovers the fact that paint is lasting longer, so that property owners need not repaint as often. Explain the effect in the short & long run.

Answer 1

In the short run, painting becomes cheaper because there is no repainting. In the long run, painting will become expensive because repainting will be required.