The price elasticity of demand for gasoline is likely to be higher in the long run than in the short run.

Question

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In the short run, consumers may not have many alternatives to gasoline, such as public transportation or electric cars. However, in the long run, consumers may be able to switch to more fuel-efficient cars or alternative modes of transportation, making the demand for gasoline more elastic. Additionally, in the long run, producers may have more time to adjust the supply of gasoline in response to changes in price, further increasing the elasticity of demand.

The Price Elasticity of Demand for Gasoline Is Likely to Be