The elasticity of demand for a product is likely to be greater.


The elasticity of demand for a product is likely t

Answer

b) the greater the amount of time over which buyers adjust to a price change. Demand is inelastic in short period but elastic in long period. It is so because in the long run, a consumer can change his habits more conveniently than in the short period.

Necessity goods have less than unitary elastic demand. Luxuries have greater than unitary elastic demand. The reason being that change in their prices has a great effect on their demand.

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