In the long run, price elasticities of demand are usually ____.
A) less than they are in the short run because people can adjust
B) the same as they are in the short run because tastes don't change
C) greater than they are in the short run because prices rise over time
D) less than they are in the short run because real prices fall over time
E) greater than they are in the short run because consumers have time to adjust

Question

Quizplus · Accepted Answer

In the long run, consumers have more time to adjust their behavior and find alternatives, making demand more elastic compared to the short run.

In the Long Run, Price Elasticities of Demand Are Usually