Which of these would result in a higher price elasticity of demand?
A) a shorter period of time for adjustment
B) a good becoming a necessity
C) fewer substitutes available
D) a longer time period for adjustment

Question

Quizplus · Accepted Answer

A longer time period for adjustment results in a higher price elasticity of demand because consumers have more time to find substitutes or adjust their consumption habits in response to price changes.

Which of These Would Result in a Higher Price Elasticity