Which of the following factors would indicate a more elastic demand?
A) The good is a necessity, rather than a luxury.
B) The good represents a small fraction of the budget.
C) Demand is measured over a longer period of time.
D) There are few substitutes for the good.

Question

Quizplus · Accepted Answer

Demand tends to be more elastic over a longer period of time because consumers have more time to adjust their behavior and find substitutes if the price of the good changes.

Which of the Following Factors Would Indicate a More Elastic