We predict the long-run price elasticity of demand for gasoline to be _____ the short-run price elasticity of demand for it.
A)less than
B)larger than
C)equal to
D)not comparable to

Question

Quizplus · Accepted Answer

The long-run price elasticity of demand for gasoline is larger than the short-run price elasticity because consumers have more time to adjust their behavior in the long run, such as by buying more fuel-efficient vehicles or using alternative modes of transportation.

We Predict the Long-Run Price Elasticity of Demand for Gasoline