Demand for a Product Tends to Be More Elastic the Longer

question 34

Multiple Choice

Demand for a product tends to be more elastic the longer the time period considered because

• A) sellers have more time to expand production.
• B) buyers get used to the new price.
• C) buyers have more time to search for substitutes.
• D) the inverse relationship between the price and the quantity demanded weakens over time.
• E) price increases over time make the price larger relative to buyers' incomes.

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Definitions:

Industrialized Nation

A country characterized by a developed economy with a significant industrial base.

Japan

A sovereign nation in East Asia, known for its rich cultural heritage, advanced technology, and strong economy.