The elasticity of demand for gasoline is likely to be
A)small, but grow as time goes by.
B)small and shrink as time goes by.
C)large and grow as time goes by.
D)large and shrink as time goes by.

Question

Quizplus · Accepted Answer

The elasticity of demand for gasoline is likely to be small in the short run, but may grow as time passes due to the availability of substitutes and changes in consumer behavior, such as purchasing more fuel-efficient vehicles. However, it is unlikely to shrink as time passes given the essential nature of gasoline in many people's daily lives.

The Elasticity of Demand for Gasoline Is Likely to Be