The price elasticity of demand increases with the length of the period considered because consumers' incomes will increase over time the demand curve will shift outward as time passes all prices will increase over time consumers will be better able to find substitutes.

The price elasticity of demand increases with the length of the period considered because consumers' incomes will increase over time the demand curve will shift outward as time passes all prices will increase over time consumers will be better able to find substitutes.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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Question

The price elasticity of demand increases with the length of the period considered because

consumers' incomes will increase over time

the demand curve will shift outward as time passes

all prices will increase over time

consumers will be better able to find substitutes.

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