Related to the Economics in Practice on page 99: Which of the following best explains why demand is often more elastic in the long run than it is in the short run?
A) When demand is elastic, price increases reduce revenue because a small price increase will lead to a large decrease in quantity demanded.
B) In the long run, consumers have greater access to substitutes.
C) Consumers tend to postpone making purchasing decisions as long as possible.
D) In the short run, prices can change rapidly, but in the long run they are more stable.

Question

Quizplus · Accepted Answer

In the long run, consumers have more time to adjust to price changes and find substitutes for the product they are consuming, making demand more elastic compared to the short run where consumers may not have the same level of access to substitutes or alternatives.

Related to the Economics in Practice on Page 99: Which