Question

the longer the time period under study,
a. the less sensitive consumers will be to price changes.
b. the more likely any given price cut will result in a smaller reaction by the consumer.
c. the more elastic is the price elasticity of demand.
d. the more inelastic is the price elasticity of demand.

Explanation:

Price elasticity of demand measures consumer sensitivity to price changes. Over longer time periods, consumers have more time to adjust their behavior: they can find substitutes, change habits, or adjust spending plans. This greater ability to respond makes demand more elastic (more responsive to price changes). Options a, b, and d all describe inelastic demand, which applies to shorter time frames where consumers cannot adjust easily.

Answer:

c. the more elastic is the price elasticity of demand.