Asked by
Campbell Shanique
on Nov 25, 2024
Verified
The price elasticity of demand increases with the length of the period considered because
A) consumers' incomes will increase over time.
B) the demand curve will shift outward as time passes.
C) all prices will increase over time.
D) consumers will be better able to find substitutes.
Price Elasticity
A formula that calculates the demand's sensitivity to the good's price variations.
Substitutes
Products or services that can be used in place of each other, offering consumers alternatives if prices change.
Time Period
A specific interval of time that is defined for a particular study, event, or analysis.
- Develop comprehension of the price elasticity concept in relation to demand and supply.
- Acknowledge the impact of time on the determination of price elasticity.
Verified Answer
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Learning Objectives
- Develop comprehension of the price elasticity concept in relation to demand and supply.
- Acknowledge the impact of time on the determination of price elasticity.