Which of the following factors would indicate a less elastic demand?
A) The good represents a large fraction of the budget.
B) Demand is measured over a shorter period of time.
C) The price of the good is low.
D) New substitutes are created.

Question

Quizplus · Accepted Answer

Demand is generally less elastic over a shorter period of time because consumers have less time to adjust their behavior or find alternatives.

Which of the Following Factors Would Indicate a Less Elastic