The demand for a product is more elastic the:
A) more broadly the product is defined.
B) longer the time period covered.
C) higher the average income of consumers.
D) smaller the share of a consumer's income the item represents.
E) larger the number of firms in the market.

Question

Quizplus · Accepted Answer

The demand for a product becomes more elastic over a longer time period because consumers have more time to adjust their behavior and find substitutes if the price changes.

The Demand for a Product Is More Elastic The