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When consumers have more time to react to a price change for a good?
Answer and Explanation: The answer is B). When consumers have more time to adjust to a change in price, the more likely that consumers will adjust the quantity demanded for the good, because, for example, consumers have a better chance of finding substitutes when more time is given.
Why does demand generally become more elastic over time?
Why does demand become more elastic over time? Competition is increased. If prices rise but income stays the same, what is the effect on the quantity demanded? Fewer goods are bought.
When demand is elastic and the price changes quizlet?
When demand is elastic (a price elasticity greater than 1) price and total revenue move in opposite directions. If demand is unit elastic (a price elasticity exactly equal to 1) total revenue remains constant when the price changes. Normal goods have positive income elasticities.
What happens when demand is elastic quizlet?
What happens when demand is elastic? An increase in price causes a fall in total revenue. A decrease in price causes a rise in total revenue.