Compared to the long run, consumers typically ____ to price changes in the short run.
A) are very responsive
B) are more demand sensitive
C) are less demand sensitive
D) do not respond at all
E) overreact

Question

Quizplus · Accepted Answer

In the short run, consumers are generally less demand sensitive to price changes because they have less time to adjust their consumption habits or find alternatives.

Compared to the Long Run, Consumers Typically ____ to Price