Question

Commerce stream question.:


class(11).

Economics..

Here my question !


Elasticity of demand is generally higher during the long period compared to the short period .why?

Answer 1

Elasticity of demand varies directly with the time period. Goods tend to have more elastic demand over longer timehorizons. Demand is generally inelasticin the short run because people find it difficult to change their habits and preferences in a short period in response to any change in prices.

Answer 2

Here ur answer..

Elasticity of demand is generally high during the long period . Because during the short period full adjustment in demand (to a change in price) may not be possible owing to consumption habits of the consumer.
For ex- in response to a substantial increase in price of wine .the consumers may not immediately reduce the consumption of wine .They main plant to give up or reduce the consumption of wind gradually over a long period of time .

hope this will help u..