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) 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 find substitutes and adjust their behavior in response to price changes, making the price elasticity of demand greater than in the short run.

In the Long Run, Price Elasticities of Demand Are Usually