The demand for gasoline should be
A)less elastic in the long run than in the short run.
B)more elastic in the long run than in the short run.
C)equally elastic in the long run as in the short run.
D)perfectly inelastic in the long run and perfectly elastic in the short run.
E)unit elastic in both the long run and the short run.

Question

Quizplus · Accepted Answer

In the long run, consumers have more time to adjust their behavior and find alternatives to gasoline, such as buying more fuel-efficient cars or using other modes of transportation. This makes the demand for gasoline more elastic in the long run than in the short run, where these adjustments cannot be made as quickly.

The Demand for Gasoline Should Be