The short run response of quantity demanded to a change in price is usually:
A)The same as the long run response.
B)Less than the long run response.
C)Greater than the long run response.
D)None of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

In the short run, consumers may not be able to adjust their consumption habits or find substitutes for the good whose price has changed, resulting in a lower elasticity of demand and a smaller change in quantity demanded compared to the long run. However, in the long run, consumers may find ways to adjust their behavior more holistically, resulting in a greater change in quantity demanded.

The Short Run Response of Quantity Demanded to a Change