In the long run, the coefficient for price elasticity of demand is likely to be ______ than the short-run elasticity coefficient.
A) lower than
B) higher than
C) the same as
D) more inelastic than

Question

Quizplus · Accepted Answer

In the long run, consumers have more time to adjust their behavior and find substitutes for a product if its price changes, making the price elasticity of demand higher compared to the short run.

In the Long Run, the Coefficient for Price Elasticity of Demand