The price elasticity of a good will tend to be greater:
A) the longer the relevant time period.
B) the fewer number of substitute goods available.
C) if it is a staple or necessity with few substitutes.
D) All of the above are true.

Question

Quizplus · Accepted Answer

The price elasticity of a good tends to be greater over a longer time period because consumers and producers have more time to adjust their behaviors and find substitutes.

The Price Elasticity of a Good Will Tend to Be