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show with the curve and explain why the price elasticity of the demand for an item...

show with the curve and explain why the price elasticity of the demand for an item will increase in the long run

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Answer #1

Long run price elasticity of demand is more because people have enough time to change their habit or found alternative of things and they a have much more time time to make decisions about respond to price change as compare to short run.

For example petrol become less price elastic of demand in short run but in long run people may start to find out its alternative as renewable energy sources and thus price elasticity of demand is more as compare to short run. E(long run) =(QL2-QL1)/(p2-p1)

E(Short run) = (Qs2-Qs1) /(p2-p1)

EL>ES

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