Which will cause a demand curve to be relatively elastic?
A) Few substitutes exist.
B) The time interval considered is long.
C) The good is considered a necessity.
D) Purchases of the good require a small portion of consumers' budgets.

Question

Quizplus · Accepted Answer

When the time interval considered is long, consumers have more time to adjust their behavior and find substitutes or alternatives to the good in question. This makes the demand curve relatively elastic, meaning that a small change in price will lead to a larger change in quantity demanded.

Which Will Cause a Demand Curve to Be Relatively Elastic