If people have more time to adjust to a price change,the price elasticity of demand for that good is likely to _____
A)increase.
B)decrease.
C)fall to zero.
D)be equal to −1.
E)remain unchanged.

Question

Quizplus · Accepted Answer

When people have more time to adjust to a price change, they may have more opportunities to find substitutes or alternatives for the good, which would increase the price elasticity of demand. Additionally, they may have time to adjust their habits or consumption patterns to reduce their demand for the good if the price increases, further increasing the elasticity.

If People Have More Time to Adjust to a Price