When the price of gasoline rises, the decrease in quantity demanded will be greater in the short run than the long run.

Question

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In the short run, consumers have less flexibility to change their gasoline consumption habits due to existing commitments and the lack of immediate alternatives. In the long run, consumers can adjust by adopting more fuel-efficient technologies or changing behaviors, leading to a greater decrease in quantity demanded.

When the Price of Gasoline Rises, the Decrease in Quantity