The demand for petrol 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 petrol.
C) unit-elastic because people tend to consume a stable amount of petrol per period.
D) inelastic because there are no good substitutes for petrol.

Question

Quizplus · Accepted Answer

In the short run, people have limited options to switch to other forms of transportation or alternative sources of energy, making the demand for petrol inelastic. While petrol consumption may decrease slightly due to small changes in price, overall people still need to purchase petrol to maintain their daily activities, making the demand inelastic.

The Demand for Petrol in the Short Run Is