Question

Elasticity of demand is generally high during the long period compared to the short period .Why?

Answer 1

________ʜᴇʏ ᴍᴀᴛᴇ_________


Elasticity of demand is generally high during the long period . Because during the short period full adjustment in demand may not be possible owing to rigid conception habits who is the consumer .

EXAMPLE__________


In response to a substantial increase in price of wine ,the consumer may not immediately reduce the consumption of wine , however they may plan to give up or reduce the consumption of wine gradually over a long period of time .



✨ Hope this helps you ✨

Answer 2

Supply is usually more price elastic the longer the time period that a supplier is allowed to adjust its production levels. Supply is likely to be price inelastic in the short run because it may be difficult for coffee farmers to expand output and to increase their use of factors of production such as land and capital.