As the amount of time a consumer has to adjust to a change in price increases,so does the price elasticity of demand for a good.

Question

Quizplus · Accepted Answer

This statement is true as consumers are more likely to adjust their consumption patterns over a longer period of time, making the demand for a good more elastic. In the short term, consumers may not have the ability to adjust their consumption as easily and therefore the demand for the good may be less elastic.

As the Amount of Time a Consumer Has to Adjust