Compared to the short-run price elasticity of demand, the long-run price elasticity of demand is
A) smaller.
B) the same.
C) greater.
D) either greater than or less, depending on the number of substitutes the good has.

Question

Quizplus · Accepted Answer

In the long-run, consumers have more time to adjust their behavior and find substitutes for a good with a price change. Therefore, the long-run price elasticity of demand is generally greater than the short-run price elasticity of demand.

Compared to the Short-Run Price Elasticity of Demand, the Long-Run