The price elasticity of demand for toasted muesli would increase if:
A) there was an increase in complements for toasted muesli
B) the definition of the toasted muesli market was made very broad
C) toasted muesli was considered a luxury product
D) the effect of a price rise was measured over a long period of time

Question

Quizplus · Accepted Answer

The price elasticity of demand for toasted muesli would increase if the effect of a price rise was measured over a long period of time. This is because consumers have more time to adjust their consumption habits and find substitutes for toasted muesli if the price increases.

The Price Elasticity of Demand for Toasted Muesli Would Increase