Demand Is (More Elastic / Less Elastic)in the Short Run

question 73

Multiple Choice

Demand is (more elastic / less elastic) in the short run than in the long run

• A)(more elastic)because goods account for a larger percentage of the consumer's budget in the short run than in the long run.
• B)(less elastic)because goods account for a smaller percentage of the consumer's budget in the short run than in the long run.
• C)(more elastic)because consumers have less time to adapt to a price change in the short run than in the long run.
• D)(less elastic)because consumers have less time to adapt to a price change in the short run than in the long run.