If the consumer has a great deal of time to adjust to an increase in the price of gasoline,which of the following is correct?
A)Quantity demanded will be relatively sensitive to the change in price.
B)The percentage change in quantity demanded will be quite small relative to the percentage change in price.
C)The percentage change in price will be quite large relative to the percentage change in quantity demanded.
D)Demand will tend to be unitary elastic as it is for most goods in the long run.

Question

Quizplus · Accepted Answer

When consumers have a great deal of time to adjust to a price increase, they can find alternatives or change their consumption habits, making the quantity demanded more sensitive to price changes. This is known as having a more elastic demand.

If the Consumer Has a Great Deal of Time to Adjust