Demand is almost always more price elastic in the long run because
A) people's preferences change.
B) newer versions of a good or service replace older ones.
C) production of the good or service stops.
D) more options become available and people can make different choices.
E) government regulations increase.

Question

Quizplus · Accepted Answer

In the long run, consumers have more time to find alternative options and substitutes for a good or service. This increases the price elasticity of demand as they can easily switch to these alternatives if the price of the original good or service increases. As more options become available, consumers have more choices, thereby making demand more elastic. The other options such as A, B, C, and E either do not necessarily lead to a change in demand elasticity or do not apply to all goods and services.

Demand Is Almost Always More Price Elastic in the Long