For computers and other business equipment, small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment. In the long run, the responsiveness of demand for business equipment with respect to income changes tends to be:
A) even more responsive.
B) less responsive.
C) equally responsive.
D) none of the above

Question

Quizplus · Accepted Answer

In the long run, businesses have more time to adjust their capital investments and technological advancements, thus making the demand for business equipment less responsive to income changes compared to short-run demand.

For Computers and Other Business Equipment, Small Changes in Business