If People Have More Time to Adjust to a Price

question 121

Multiple Choice

If people have more time to adjust to a price change,the price elasticity of demand for that good is likely to _____

• A)increase.
• B)decrease.
• C)fall to zero.
• D)be equal to −1.
• E)remain unchanged.

---

Definitions:

Constructive Trust

A legal concept created by a court to rectify a situation where someone has wrongfully gained property at another's expense.

Agency Relationship

An agency relationship occurs when one party, the agent, is authorized to act on behalf of another party, the principal, in dealings with third parties.

Breaches

Instances of violation or non-compliance with laws, regulations, contracts, or standards.

Agency Agreement

A contract between two parties where one (the agent) agrees to represent or act on behalf of the other (the principal) in business dealings.