Moving from the short run to the long run, demand tends to become **more elastic**. This means that consumers become more sensitive to price changes as time progresses.
Here's why:
1. In the short run, consumers may have limited options and time to adjust their purchasing behavior. For example, if the price of gasoline increases suddenly, consumers may still need to purchase it despite the higher cost due to lack of immediate alternatives.
2. However, in the long run, consumers have more flexibility to respond to price changes. They can seek out substitutes, change their consumption habits, or even switch to entirely different products or services. This increased ability to adjust their behavior makes demand more elastic in the long run.
In summary, as time passes and consumers have more opportunities to make changes in their purchasing decisions, demand becomes more elastic, reflecting a greater sensitivity to price fluctuations.
