Suppose the price of gasoline rises. As time passes, people adjust to the higher price, and the demand for gasoline becomes:
A)more elastic.
B)more inelastic.
C)steeper.
D)higher.

Question

Quizplus · Accepted Answer

Over time, as people adjust to the higher price of gasoline, they may find alternatives or change their consumption habits, making the demand for gasoline more elastic. This means they are more responsive to changes in price.

Suppose the Price of Gasoline Rises