Which of the following factors would indicate more elastic demand?
A)The good is a necessity, rather than a luxury.
B)The good represents a small fraction of the budget.
C)Demand is measured over a longer period of time.
D)There are few substitutes for the good.

Question

Quizplus · Accepted Answer

Demand tends to be more elastic over a longer period of time because consumers have more time to adjust their behavior and find alternatives.

Which of the Following Factors Would Indicate More Elastic Demand