The Amount of Time Elapsed Since a Price Change Influences

question 121

Multiple Choice

The amount of time elapsed since a price change influences the price elasticity of demand because as more time passes,

• A)consumers find more substitutes and the price elasticity of demand for the original good decreases.
• B)consumers find more substitutes and the price elasticity of demand for the original good increases.
• C)the price of the good will return to its original value.
• D)the income of consumers rises and the price elasticity of demand for the good increases.
• E)the income of consumers rises and the price elasticity of demand for the good decreases.

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