If the price of gasoline rises,when is the price elasticity of demand likely to be the highest?
A)immediately after the price increases
B)one month after the price increase
C)three months after the price increase
D)one year after the price increase

Question

Quizplus · Accepted Answer

Price elasticity of demand is likely to be highest one year after the price increase because consumers have had more time to adjust their behavior, find alternatives, or change consumption habits.

If the Price of Gasoline Rises,when Is the Price Elasticity