In differentiating between the short-run and long-run elasticities for the same good, when economists talk about short-run elasticities,
A) they cannot distinguish between the two types
B) there is no differentiation if it's the same good
C) they are the same as long-run elasticities for the same good
D) they are usually higher than long-run elasticities
E) they are usually lower than long-run elasticities

Question

Quizplus · Accepted Answer

Short-run elasticities are usually lower than long-run elasticities because consumers and producers have less time to adjust their behaviors and choices in the short run. In the long run, they have more time to find substitutes or alter consumption/production patterns, leading to higher elasticity.

In Differentiating Between the Short-Run and Long-Run Elasticities for the Same