Relative to the short-run demand for gasoline,the long-run demand for gasoline is
A) probably more elastic since people need time to change automobiles and driving habits.
B) probably less elastic since people need time to change automobiles and driving habits.
C) probably more elastic because people can hoard this good.
D) probably less elastic because people cannot store this good.

Question

Quizplus · Accepted Answer

In the short-run, people cannot quickly change their driving habits or vehicles to respond to changes in gasoline prices, leading to a relatively inelastic demand. However, in the long-run, people have more time to adjust their behavior, such as purchasing more fuel-efficient vehicles or using public transportation, leading to a more elastic demand for gasoline.

Relative to the Short-Run Demand for Gasoline,the Long-Run Demand for Gasoline