The longer people have to adjust to a price change:
A)the more elastic their demand will be.
B)the less elastic their demand will be.
C)will not affect the elasticity of their response unless it is a luxury good.
D)will not affect the elasticity of their response unless the good is a necessity.

Question

Quizplus · Accepted Answer

The longer people have to adjust to a price change, the more likely they are to find substitutes, adjust their consumption patterns, or search for lower prices elsewhere. This makes their demand more elastic, as they become more responsive to changes in price.

The Longer People Have to Adjust to a Price Change