Why does demand generally become more elastic over time? a. people don't change their shopping behavior over timeb. few substitutes become availablec. people buy more products over timed. people have time to find substitutes and change behaviors

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Business

Nathalie Faulkner

23 February, 16:14

Why does demand generally become more elastic over time? a. people don't change their shopping behavior over timeb. few substitutes become availablec. people buy more products over timed. people have time to find substitutes and change behaviors

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Mathew Hester · Answer 1

people have time to find substitutes and change behaviors

Explanation:

Demand elasticity is a microeconomic concept that aims to measure the sensitivity of demand in the face of price changes. When price goes up and demand goes down a lot, demand is said to be price elastic. When price rises and demand does not change significantly, demand is said to be inelastic to price.

If the demand for a product is inelastic in the short term, it means that the demanders will continue to buy the good even with the price increase. This is mainly due to the essential features of some goods, such as remedies.

However, in the long run, people have the ability to search and find sub-substitute goods, so that they become more price sensitive, meaning that demand becomes elastic.