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

Question

Quizplus · Accepted Answer

When people have more time to adjust to a price change, they have more opportunities to find substitutes or alternative products, which increases the price elasticity of demand. Therefore, they are more likely to change their consumption patterns in response to a price change, making their demand more elastic.

The More Time People Have to Adjust to a Price