If the short-run elasticity of demand for bus travel is 1.01, its long run elasticity of demand is likely to be _____.
A)unit elastic
B)greater than 1.01
C)equal to 1.01
D)less than 1.01
E)perfectly inelastic

Question

Quizplus · Accepted Answer

In general, the long-run elasticity of demand for a product or service is greater than its short-run elasticity because consumers have more time to adjust their behavior and explore alternatives.

If the Short-Run Elasticity of Demand for Bus Travel Is