Question

Which of the following statements about the price elasticity of demand is correct? 

• Demand is more elastic in the long run than it is in the short run. 

• Demand is more elastic the smaller the percentage of the consumer's budget the item takes up. 

• The absolute value of the elasticity of demand ranges from zero to one. 

• The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good

Answer 1

Demand is more elastic in the long run than it is in the short run because in the long run people adjust to the change in demand by changing their shopping habits or behaviour according to change in price. For example, if price of a luxurious commodity rises then in the short run, people will still buy it but in the long run people will look for substitutes and change their shopping habits.

Answer 2

I dont fuckin know my guy but that is a shitty pic 8====D