The demand for gasoline will be most elastic
A) 1 day after the price change.
B) 1 week after the price change.
C) 1 month after the price change.
D) 1 year after the price change.

Question

Quizplus · Accepted Answer

The demand for gasoline becomes more elastic over time as consumers have more time to adjust their consumption habits, find alternatives, or make other changes in response to price changes. After a year, consumers are more likely to have adapted to the price change, making the demand more elastic compared to shorter time frames.

The Demand for Gasoline Will Be Most Elastic