According to the Case in Point on price elasticity of home water demand in Phoenix, the researchers Yoo, Simonit, Kinzig, and Perrings found that:
A) the absolute value of the price elasticity of demand was higher in the short run than in the long run.
B) the absolute value of the price elasticity of demand was lower in the short run than in the long run.
C) people can adjust more easily to changes in the price of water in the short run than in the long run.
D) low-income/low water-users are less responsive to price changes than are high-income/high water-users.

Question

According to the Case in Point on price elasticity of home water demand in Phoenix, the researchers Yoo, Simonit, Kinzig, and Perrings found that:
A) the absolute value of the price elasticity of demand was higher in the short run than in the long run.
B) the absolute value of the price elasticity of demand was lower in the short run than in the long run. 
C) people can adjust more easily to changes in the price of water in the short run than in the long run.
D) low-income/low water-users are less responsive to price changes than are high-income/high water-users.

Quizplus · Accepted Answer

The researchers found that the absolute value of the price elasticity of demand was lower in the short run than in the long run. This means that consumers were less responsive to price changes in the short run, but more responsive in the long run. This is likely due to the fact that in the short run, consumers may have limited options for reducing their water usage, but in the long run, they may be able to make more significant changes like installing water-efficient appliances or changing landscaping.

According to the Case in Point on Price Elasticity of Home