The longer the time that has elapsed since a price change the more time consumers will have to respond to price changes. As a result, demand becomes
A)zero.
B)more inelastic.
C)more elastic.
D)perfectly inelastic.
E)unit elastic.

Question

Quizplus · Accepted Answer

The longer the time that has elapsed since a price change, the more likely consumers are to adjust their behavior in response. This means that the demand for the product becomes more elastic, as consumers have more time to find substitutes or adjust their consumption patterns in response to price changes. As a result, the price elasticity of demand will increase, indicating that demand is more responsive to changes in price.

The Longer the Time That Has Elapsed Since a Price