The textbook tells us that in the short run, people typically ___________ price changes when compared to the long run.
A) are very responsive to
B) are more sensitive to
C) are less sensitive to
D) do not respond to
E) are unaware of

Question

Quizplus · Accepted Answer

In the short run, people are generally less sensitive to price changes because they may not immediately change their consumption habits or may not have alternatives readily available. Over time (in the long run), people can adjust their behavior more significantly in response to price changes.

The Textbook Tells Us That in the Short Run, People