The more time consumers have to adjust to a change in price:
A. the smaller will be the price elasticity of demand.
B. the greater will be the price elasticity of demand.
C. the more likely the product is a normal good.
D. the more likely the product is an inferior good.
Price Elasticity of Demand:
The price elasticity of demand describes how sensitive consumer's consumption of a particular good is with respect to changes in the price of the good. The elasticity of demand depends on various factors such as income, availability of substitutes, and characteristics of the good.
Answer and Explanation: 1
The answer is B).
When consumers have more time to adjust to a change in price, the more likely that consumers will adjust the quantity demanded for...
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fromChapter 3 / Lesson 54
Learn what price elasticity is. Discover how to find price elasticity of demand, study examples of price elasticity, and examine a price elasticity graph.