What is the demand for petrol in the short run?
A)Elastic because people can easily switch to public transportation
B)Perfectly inelastic because people have no choice but to buy petrol
C)Unit-elastic because people tend to consume a stable amount of petrol per period
D)Inelastic because there are no good substitutes for petrol

Question

Quizplus · Accepted Answer

The demand for petrol in the short run is inelastic because there are no good substitutes for petrol. People may be able to reduce their consumption slightly by carpooling or combining trips, but they still need to use petrol to fuel their vehicles for transportation. In the short run, it is difficult for consumers to find alternative modes of transportation that do not rely on petrol.

What Is the Demand for Petrol in the Short Run