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definition: Consumers cannot always respond quickly to price changes
- The more time a consumer has to adjust purchasing, the more elastic the demand - The less time a consumer has to adjust purchasing, the more inelastic the demand connected key terms: factors impacting elasticity | availability of substitutes | consumer budget | necessity | changes overtime | total revenue
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▪ As gas prices rise, consumers can switch to smaller, or more fuel efficient cars making the demand for gas more elastic in the long term. |