A war in the Middle-East increases the price of oil. Suppose that the price hike holds. Over what period of time would you expect the largest change in quantity?

Question

Quizplus · Accepted Answer

The largest change in quantity demanded or supplied in response to a price change typically occurs over a longer period, such as a year, because consumers and producers need time to adjust their behaviors and choices.

A War in the Middle-East Increases the Price of Oil