If the price of subway rides increases, quantity demanded will be:
A) more elastic in six weeks than in six months.
B) more elastic in six months than in six weeks.
C) the same over any time period.
D) unpredictable without more information.

Question

Quizplus · Accepted Answer

Over time, consumers have more opportunities to adjust to the price increase by finding alternative transportation options, and therefore become more sensitive to changes in price. This makes the demand more elastic in the long run (six months) compared to the short run (six weeks).

If the Price of Subway Rides Increases, Quantity Demanded Will