The demand curve for petroleum should be
A) more elastic in the long run than in the short run.
B) less elastic in the long run than in the short run.
C) as elastic in the long run as it is in the short run.
D) more or less elastic in the long run versus the short run depending upon supply conditions.

Question

Quizplus · Accepted Answer

In the short run, consumers have limited options to reduce their consumption of petroleum, such as finding alternative modes of transportation or reducing their usage of energy-intensive products. However, in the long run, consumers can adopt more fuel-efficient technologies and alternative energy sources, making their demand for petroleum more elastic. Therefore, the demand curve for petroleum should be more elastic in the long run than in the short run.

The Demand Curve for Petroleum Should Be