Demand is (more elastic / less elastic)in the short run than in the long run
A)(more elastic)because goods account for a larger percentage of the consumer's budget in the short run than in the long run.
B)(less elastic)because goods account for a smaller percentage of the consumer's budget in the short run than in the long run.
C)(more elastic)because consumers have less time to adapt to a price change in the short run than in the long run.
D)(less elastic)because consumers have less time to adapt to a price change in the short run than in the long run.

Question

Quizplus · Accepted Answer

Demand is generally less elastic in the short run because consumers have less time to find substitutes or adjust their consumption habits in response to a price change. Over the long run, consumers can adjust their behavior more fully, making demand more elastic.

Demand Is (More Elastic / Less Elastic)in the Short Run