“The price elasticity of demand for a particular good is smaller in the long run because consumers adapt to higher prices over time.” Do you agree or disagree? Explain.

What will be an ideal response?


Disagree. Price elasticity of demand is related to a particular good rather than all the goods that individuals may consume. In the long run, consumers can find more substitutes. Thus, the price elasticity of demand of a particular good is actually greater in the long run than in the short run.