The price elasticity of a good will tend to be larger:
A) the longer the relevant time.
B) the fewer the number of substitute goods available.
C) if it is a staple or necessity with few substitutes.
D) if the share of income spent on the good is small.

Question

Quizplus · Accepted Answer

Over a longer time period, consumers have more time to find substitutes or adjust their behavior, making the demand more elastic.

The Price Elasticity of a Good Will Tend to Be