Why is the demand curve for oil rather inelastic?
A)There are few widely available good substitutes for oil.(True Answer )Correct
B)To increase the production of oil requires a significant outlay of exploration and drilling costs.
C)The world supply of oil is low relative to demand.
D)The demand curve for oil is always perfectly inelastic.

Question

Quizplus · Accepted Answer

The demand for oil is rather inelastic because there are few widely available good substitutes for oil. This means that even if the price of oil increases, consumers cannot easily switch to other alternative sources of energy, making their demand for oil relatively unaffected by price changes.

Why Is the Demand Curve for Oil Rather Inelastic