Suppose that the value of the long-run absolute elasticity of demand for a good is 1.21. Then, we know the short-run absolute price elasticity of demand will be
A) inelastic.
B) greater than 1.21.
C) elastic.
D) less than 1.21.

Question

Quizplus · Accepted Answer

In the short run, consumers have less time to adjust their behavior, so the absolute price elasticity of demand is typically less than in the long run.

Suppose That the Value of the Long-Run Absolute Elasticity of Demand