Quick question, would Demand not be considered more elastic if prices adjust quickly to prices and less elastic when it takes longer?
Do you mean if _ the quantity demanded _ adjusts quickly to price changes?
If so, then, Yes.
Otherwise, I don’t understand the question.
It is from a mock question and it did not specify but it should be for quantity demanded. The answer was; the demand for a good is more elastic when the adjustment to price takes a longer amount of time" which I find weird, not sure if it’s an error.
I think I know what was meant (though, perhaps, not what was written): The greater the amount of time that has elapsed since a price change, the more price-elastic the demand. This means that even goods that are very price-inelastic in the short run can become price-elastic in the long run as consumers have more time to search for substitutes, change their lifestyles, or whatever.
That is it!. Thanks S2000
Whew!
My pleasure.