In the long run,the price elasticity of demand is ________ than in the short run because ________.
A)less; consumers have more time in which to make adjustments to price changes
B)less; the percentage change is measured over a larger amount of time
C)greater; consumers have more time in which to make adjustments to price changes
D)greater; firms have more time to shift the burden of the tax forward to consumers

Question

Quizplus · Accepted Answer

In the long run, consumers have more time to find substitutes for the good and adjust their consumption patterns, making the price elasticity of demand greater. In the short run, consumers may have fewer options and may be more willing to pay higher prices, making the price elasticity of demand less.

In the Long Run,the Price Elasticity of Demand Is ________