posted by Anonymous .
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?
I said A.Inelastic because, its a short run and the firm cannot easily change its output level. Am I right?
Thank you so much i just wanted to make sure im right before i make my final choice.
WRONG. The answer is ELASTIC
Nevermind. It is INELASTIC. My bad