Question

g If it is difficult to substitute for a good in the short run, but easy in the long run, then _____ . Group of answer choices the elasticity of demand is more elastic in the short un elasticity changes along the demand curve the elasticity of demand is more elastic in the long run the good is an inferior good

Answer 1

Answer:

the elasticity of demand is more elastic in the long run

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases  

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

In the long run, people have more time to search for suitable alternatives than when compared to the short run. Thus, demand tends to be more elastic in the long run