Which of the following factors would indicate less elastic demand?
A)The good represents a large fraction of the budget.
B)Demand is measured over a shorter period of time.
C)The price of the good is low.
D)New substitutes are created.

Question

Quizplus · Accepted Answer

Demand is generally less elastic over a shorter period of time because consumers have less time to adjust their behavior or find alternatives.

Which of the Following Factors Would Indicate Less Elastic Demand