If the price of milk rises,when is the price elasticity of demand likely to be the lowest?
A)immediately after the price increase
B)one month after the price increase
C)three months after the price increase
D)one year after the price increase

Question

Quizplus · Accepted Answer

Immediately after the price increase, consumers may not have had enough time to adjust their consumption habits and may still need to purchase milk despite the higher price. Therefore, the price elasticity of demand is likely to be lower in the short term. Over time, consumers may find alternative products or change their preferences, making the price elasticity of demand higher in the long term.

If the Price of Milk Rises,when Is the Price Elasticity