In the long run, price elasticities of demand are usually
A) greater than they are in the short run because consumers have time to adjust.
B) the same as they are in the short run because tastes don't change.
C) less than they are in the short run because prices rise over time.
D) less than they are in the short run because real prices fall over time.

Question

Quizplus · Accepted Answer

In the long run, consumers have more time to adjust their behavior and find substitutes for a product, making price elasticities of demand greater than they are in the short run. Additionally, preferences and technology can change over time, further affecting demand elasticity.

In the Long Run, Price Elasticities of Demand Are Usually