Demand tends to be:
A) more elastic in the short term than in the long term.
B) more inelastic in the short term than in the long term.
C) equally elastic in the short term and in the long term.
D) None of the statements is correct.

Question

Quizplus · Accepted Answer

Demand is generally more inelastic in the short term because consumers and producers need time to adjust to changes in price. Over the long term, they can find substitutes or change their behavior, making demand more elastic.

Demand Tends to Be