The longer the period of time consumers have to adjust to price changes, the __________ the __________ elasticity of demand.
A)lower, price
B)lower, income
C)higher, price
D)higher, income

Question

Quizplus · Accepted Answer

The longer the period of time consumers have to adjust to price changes, the higher the price elasticity of demand. This is because consumers have more time to find substitutes or alter their consumption habits in response to price changes.

The Longer the Period of Time Consumers Have to Adjust