The short-run response of quantity demanded to a change in price is usually:
A) the same as the long-run response.
B) less than the long-run response.
C) greater than the long-run response.
D) None of the statements is correct.

Question

Quizplus · Accepted Answer

In the short run, consumers may have limited options or may not have time to adjust to a change in price, leading to a less elastic response in quantity demanded. In the long run, however, consumers have more time to adjust their consumption patterns, leading to a more elastic response in quantity demanded. Therefore, the short-run response of quantity demanded is often less than the long-run response.

The Short-Run Response of Quantity Demanded to a Change in Price