Asked by Big Citric's World on Jul 12, 2024
Verified
The more time consumers have to adjust to a change in price,
A) the smaller will be the price elasticity of demand.
B) the greater will be the price elasticity of demand.
C) the more likely the product is a normal good.
D) the more likely the product is an inferior good.
Price Elasticity
An index representing how the demand or supply of an item responds to price fluctuations.
Time Consumers
Activities or processes that require a significant amount of an individual's or organization's time.
- Examine the elements influencing the elasticity of demand in terms of price, including temporal aspects, the presence of alternative options, and the share of income allocated to purchasing a product.
- Identify the disparity in elasticity between demand over short-run and long-run periods.
Verified Answer
MG
Matthew gerriorJul 18, 2024
Final Answer :
B
Explanation :
The greater will be the price elasticity of demand because consumers have more time to find substitutes or adjust their consumption habits when prices change over a longer period.
Learning Objectives
- Examine the elements influencing the elasticity of demand in terms of price, including temporal aspects, the presence of alternative options, and the share of income allocated to purchasing a product.
- Identify the disparity in elasticity between demand over short-run and long-run periods.