The amount of time elapsed since a price change impacts the elasticity of demand because as more time passes
A) people can find more substitutes, and so the elasticity of demand decreases.
B) people can find more substitutes, and so the elasticity of demand increases.
C) people's incomes will increase, and so the elasticity of demand decreases.
D) the good's price will have a chance to return to its previous level.

Question

Quizplus · Accepted Answer

As more time passes, consumers have more opportunities to find substitutes, making the demand more elastic.

The Amount of Time Elapsed Since a Price Change Impacts