Gasoline in the long run will generally exhibit:
A)greater elasticity of demand than in the short run.
B)greater elasticity of demand that for jewelry.
C)less elasticity of demand than in the short run.
D)less elasticity of demand than with regard to insulin for diabetics.

Question

Quizplus · Accepted Answer

In the long run, consumers have more time to adjust to changes in gasoline prices, such as purchasing more fuel-efficient vehicles or changing their commuting habits, leading to a greater elasticity of demand. In the short run, consumers have fewer options and therefore exhibit less elasticity of demand. In the long run, consumers have more time to adjust their behavior and find substitutes for gasoline, such as purchasing more fuel-efficient cars or using public transportation. This makes the demand for gasoline more elastic in the long run, meaning that a change in price will result in a larger change in quantity demanded.

Gasoline in the Long Run Will Generally Exhibit