Question

How does the time period affect the elasticity of demand?

Options

• Short periods have inelastic demand, while long periods have elastic demand.

• Time period has no influence on price elasticity of demand.

• Both short and long periods always result in elastic demand.

• Short periods always have elastic demand, while long periods have inelastic demand.

Answer 1

Short periods have inelastic demand, while long periods have elastic demand.

Explanation:

In short periods, consumers cannot adjust easily. In long periods, they can find alternatives, making demand elastic.