If the price of apples rises, when is the price elasticity of demand likely to be the highest?
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

The price elasticity of demand is likely to be the highest one year after the price increase because consumers have more time to find substitutes or adjust their consumption habits in response to the price change. Over a longer period, the demand tends to become more elastic as people explore and adapt to alternatives.

If the Price of Apples Rises, When Is the Price