Demand for a product tends to be more elastic the longer the time period considered because
A) sellers have more time to expand production.
B) buyers get used to the new price.
C) buyers have more time to search for substitutes.
D) the inverse relationship between the price and the quantity demanded weakens over time.
E) price increases over time make the price larger relative to buyers' incomes.

Question

Quizplus · Accepted Answer

The longer the time period considered, the more opportunity buyers have to search for substitutes for the product, thus making demand more elastic. This means that a small change in price will cause a larger change in the quantity demanded.

Demand for a Product Tends to Be More Elastic the Longer