ECONOMICS

posted by .

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

  • ECONOMICS -

    I agree

  • ECONOMICS -

    If the price of gasoline is relatively high for a long time, consumers are more likely to buy more fuel-efficient cars.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long run. c. If the price of heating oil rises from $1.80 to $2.20 per gallon, what happens to the quantity of heating oil demanded in the …
  2. Microeconomics; price elasticity of demand

    Please check and correct my answers? Thank you. QUESTIONS: 1. The time horizon of the demand curve is one determinant of the price elasticity of demand. Compared to the short-run demand for oil, the demand for oil in the long run will
  3. home economics

    Suppose that 200 gallons of gasoline are demanded at a particular price. If the price drops by 1 percent, the quantity demanded of gasoline increases to 200.5 gallon. which of the following statement is true?
  4. economics

    Why do long-run elasticities of demand differ from short-run elasticities?
  5. Economics

    Grocery stores and gasoline stations in a large city would appear to be examples of competitive markets: There are numerous relatively small sellers, each seller is a price taker, and the products are quite similar. a. How could we …
  6. micro economics

    1) Assume that the gold-mining industry is competitive. a) Illustrate a long-run equilibrium using diagrams for the gold market and for the a representative gold mine. b) Suppose that an increase in jewellery demand induces a a surge …
  7. economics

    I am completely stuck on these two questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …
  8. economics

    I am completely stuck on these two questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …
  9. economics

    am completely stuck on these three questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …
  10. Economics: Am I right?

    I am completely stuck on these two questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …

More Similar Questions