The price elasticity of demand increases with the length of the period considered because
A)consumers' incomes will increase over time.
B)the demand curve will shift outward as time passes.
C)all prices will increase over time.
D)consumers will be better able to find substitutes.

Question

Quizplus · Accepted Answer

The price elasticity of demand tends to increase over time because consumers have more time to adjust their behavior and find substitutes for the product in question. This adjustment period allows for a greater response to price changes, making demand more elastic.

The Price Elasticity of Demand Increases with the Length of the Period