If the short run elasticity of demand for bus service is 1.01, we would expect the long run elasticity of demand to be:
A)relatively inelastic.
B)greater than 1.01.
C)equal to 1.01.
D)less than 1.01.

Question

If the short run elasticity of demand for bus service is 1.01, we would expect the long run elasticity of demand to be:
A)​relatively inelastic.
B)​greater than 1.01.
C)​equal to 1.01.
D)​less than 1.01.

Quizplus · Accepted Answer

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

If the Short Run Elasticity of Demand for Bus Service