Question

Why do​ long-run elasticities of demand differ from​ short-run elasticities? ​long-run elasticities of demand differ from​ short-run elasticities because

a. durable goods last a relatively long timedurable goods last a relatively long time.

b. it takes time for people to change their consumption habitsit takes time for people to change their consumption habits.

c. firms may be constrained in the short run by production capacity.

d. both a and b are correct.

e. all of the above?

Answer 1

I think the most appropriate answer would be B.



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