QuestionJune 2, 2025

Price elasticity of demand is generally Multiple Choice greater in the long run than in the short run. greater in the short run than in the long run. the same in both the short run and the long run. greater for "necessities than it is for "luxuries."

Price elasticity of demand is generally Multiple Choice greater in the long run than in the short run. greater in the short run than in the long run. the same in both the short run and the long run. greater for "necessities than it is for "luxuries."
Price elasticity of demand is generally
Multiple Choice
greater in the long run than in the short run.
greater in the short run than in the long run.
the same in both the short run and the long run.
greater for "necessities than it is for "luxuries."

Solution
4.3(183 votes)

Answer

greater in the long run than in the short run. Explanation 1. Understand Elasticity Over Time Price elasticity of demand measures how quantity demanded responds to price changes. Over time, consumers can adjust more fully to price changes. 2. Compare Long Run vs Short Run In the long run, consumers have more time to find alternatives or change habits, making demand more elastic compared to the short run.

Explanation

1. Understand Elasticity Over Time<br /> Price elasticity of demand measures how quantity demanded responds to price changes. Over time, consumers can adjust more fully to price changes.<br /><br />2. Compare Long Run vs Short Run<br /> In the long run, consumers have more time to find alternatives or change habits, making demand more elastic compared to the short run.
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