Short-run – one year or less
Long-run – enough time is allowed for consumers or producers to adjust fully to the price change
**For goods which are used daily (coffee, toilet paper, paper, pens), demand is more price elastic in the long run than in the short run.
**For goods which are bought rarely (cars, fridges, houses), demand is less elastic in the long run than in the short run.
Cyclical industries – Industries in which sales tend to magnify cyclical changes in gross domestic product and national income.
**Firms face capacity constraints in the short run and need time to expand capacity by building new production facilities and hiring workers to staff them.