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August 1, 2015

Homework Help: ECONOMICS

Posted by Sammy on Monday, September 14, 2009 at 10:06pm.

The demand for gasoline is less elastic in the short run than in the long run. Which of the following is a reason for this?

(A) If the price of gasoline is relatively high for a long time, consumers are more likely to buy more fuel-efficient cars.
(B) In the short run, the number of cars driven is fixed; whereas in the long run, people might switch to alternatives like public transportation.
(c) If the price of gasoline is relatively low for a long time, consumers are more likely to buy large, feature-heavy SUVs without much concern for gas mileage.


I say a and b, am i right

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