Homework Help: Economics

Posted by Anonymous on Thursday, April 19, 2012 at 5:58pm.

A large increase in gas prices creates a demand for cars with good gas mileage. It takes months for car companys to make these cars. How do you describe this market for cars?

A. Inelastic
B. Static

I said A.Inelastic because, its a short run and the firm cannot easily change its output level. Am I right?

Economics - Damon, Thursday, April 19, 2012 at 6:06pm
yes:
http://www.businessdictionary.com/definition/inelastic-supply.html
Economics - Ms. Sue, Thursday, April 19, 2012 at 6:07pm
I agree.
Economics - Anonymous, Thursday, April 19, 2012 at 6:08pm
Thank you so much i just wanted to make sure im right before i make my final choice.
Economics - Anonymous, Thursday, February 21, 2013 at 12:40pm
WRONG. The answer is ELASTIC
Economics - Anonymous, Thursday, February 21, 2013 at 12:41pm
Nevermind. It is INELASTIC. My bad

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