Compared to the long-run absolute elasticity of demand, the short-run absolute elasticity of demand is
A) smaller.
B) the same.
C) larger.
D) either smaller or larger, depending on other factors.

Question

Quizplus · Accepted Answer

In the short run, consumers have less time to adjust their behavior to price changes, leading to a smaller absolute elasticity of demand compared to the long run, where they have more time to find substitutes or change consumption habits.

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