The long-run price elasticity of demand for a product is generally ______ the short-run elasticity for the same product.
A)lower than
B)equal to
C)higher than
D)not comparable to

Question

Quizplus · Accepted Answer

In the long run, consumers have more time to adjust their behavior and switch to substitutes or find ways to reduce their consumption of the product. This makes the long-run price elasticity of demand higher than the short-run elasticity, where consumers may not have the same flexibility to adjust their choices immediately.

The Long-Run Price Elasticity of Demand for a Product Is