The demand for gasoline in the short run is
A) elastic because people can easily switch to public transportation.
B) perfectly inelastic because people have no choice but to buy gasoline.
C) unit-elastic because people tend to consume a stable amount of gasoline per period.
D) inelastic because there are no good substitutes for gasoline.

Question

Quizplus · Accepted Answer

In the short run, there are no good substitutes for gasoline, so the demand is relatively inelastic. Even if gasoline prices rise, most people still need to use their cars for transportation and are unable to quickly switch to alternative modes of transportation.

The Demand for Gasoline in the Short Run Is