If consumers have a long time to respond to an increase in electricity prices their demand is likely to be ________ than if they are only given a short time.
A) no different
B) higher
C) more elastic
D) less elastic

Question

Quizplus · Accepted Answer

When consumers have a longer time to respond to an increase in electricity prices, they have more time to adjust their behavior and seek alternatives, making their demand more elastic. This means that they are more sensitive to price changes and more likely to decrease their consumption in response to the price increase. Therefore, the best choice is option C, more elastic demand.

If Consumers Have a Long Time to Respond to an Increase