The statement which is correct about the price elasticity of demand is:
A) The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good.
B) The absolute value of the elasticity of demand ranges from zero to one.
C) Demand is more elastic in the long run than it is in the short run.
D) Demand is more elastic the smaller the percentage of the consumer's budget the item takes up.

Question

Quizplus · Accepted Answer

Demand tends to be more elastic in the long run because consumers have more time to adjust their behavior and find substitutes.

The Statement Which Is Correct About the Price Elasticity of Demand