Holding all other forces constant, when the price of gasoline rises, the number of gallons of gasoline demanded would fall substantially over a ten-year period because
A) buyers tend to be much less sensitive to a change in price when given more time to react.
B) buyers tend to be much more sensitive to a change in price when given more time to react.
C) buyers will have substantially more income over a ten-year period.
D) the quantity supplied of gasoline increases very little in response to an increase in the price of gasoline.

Question

Quizplus · Accepted Answer

Over a ten-year period, consumers have more time to adjust their behavior, such as switching to more fuel-efficient vehicles or alternative modes of transportation, making them more sensitive to price changes.

Holding All Other Forces Constant, When the Price of Gasoline