question archive Suppose egg producers succeed in permanently raising the price of their product by 15%, and as a result the quantity demanded falls by 15% in the short run
Suppose egg producers succeed in permanently raising the price of their product by 15%, and as a result the quantity demanded falls by 15% in the short run
Subject:EconomicsPrice:2.88 Bought3
Suppose egg producers succeed in permanently raising the price of their product by 15%, and as a result the quantity demanded falls by 15% in the short run. In the long run, by how much would quantity demanded fall?
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The quantity demanded will decrease by more than 15%
In the short-run, the consumers have less period to adjust their consumption patterns following a price change than in the long-run. Thus, the demand appears to be less elastic in the short-run than in the long-run.
