Ceteris paribus, if more alternative forms of energy become available, we would expect the demand for gasoline to become
A) more elastic.
B) more inelastic.
C) perfectly elastic.
D) perfectly inelastic.

Question

Quizplus · Accepted Answer

If more alternative forms of energy become available, consumers have more substitute products and are less reliant on gasoline. This means that the demand for gasoline would become more elastic, meaning that consumers would be more responsive to changes in the price of gasoline.

Ceteris Paribus, If More Alternative Forms of Energy Become Available