The longer the time period under study,
A) the more elastic is the price elasticity of demand.
B) the less sensitive consumers will be to price changes.
C) the more likely any given price cut will result in a smaller reaction by the consumer.
D) the more inelastic is the price elasticity of demand.

Question

Quizplus · Accepted Answer

Over a longer time period, consumers have more time to adjust their behavior in response to price changes, making the price elasticity of demand more elastic. They can find substitutes, change habits, or adjust their budgets, leading to a greater sensitivity to price changes.

The Longer the Time Period Under Study