Demand for a good tends to be more elastic in the long run than in the short run because

prices are fixed in the long runCorrect answerYour answerbuyers have more time to find substitutes and change habitsCorrect answerYour answerincomes fall in the long runCorrect answerYour answergoods become necessities in the long runCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Right after a price rise people may keep buying out of habit; given time, they adjust and switch.

Concept: Time and elasticity
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsWhat decides elasticity

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Ten questions from Price Elasticity of Demand, at your own pace.

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Ten questions from Price Elasticity of Demand, at your own pace.

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Demand for a good tends to be more elastic in the long run than in the short run because

Explanation