Holding all other forces constant, when the price of gasoline rises, the number of gallons of gasoline demanded would fall substantially over a 10-year period because:
A)buyers tend to be much less sensitive to a change in price when given more time to react
B)buyers will have substantially more income over a 10-year period
C)buyers tend to be much more sensitive to a change in price when given more time to react
D)none of these answers are correct

Question

Quizplus · Accepted Answer

Over a longer period of time, buyers have more opportunities to make adjustments to their behavior, such as purchasing a more fuel-efficient vehicle or adjusting their daily commute. This increased flexibility makes buyers more sensitive to changes in price, resulting in a greater decrease in the number of gallons demanded.

Holding All Other Forces Constant, When the Price of Gasoline