If the short-run price elasticity of demand for hospital care is .27, then the long-run price elasticity is expected to be:
A) greater than .27.
B) greater than 1.
C) less than .27.
D) equal to .27.
E) less than 0.

Question

Quizplus · Accepted Answer

In the long run, consumers have more time to adjust their behavior, such as finding alternative sources of healthcare or adjusting their lifestyles to prevent illness. Therefore, the long-run price elasticity of demand is generally higher than the short-run elasticity.

If the Short-Run Price Elasticity of Demand for Hospital Care