8 The constraint of time temporarily limits the ability of consumers to adjust to changes in prices.

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8 The constraint of time temporarily limits the ability of consumers to adjust to changes in prices. With the passage of time, a price increase will usually elicit a larger reduction in quantity demanded. Similarly, the market supply curve shows more responsiveness to a change in price in the long run than during the short-term time period.

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Essentials Of Economics

ISBN: 396414

2nd Edition

Authors: James D Gwartney; Richard Stroup; J R Clark

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